Crypto Exchange Goes Offline and Then Returns

Colin Baseman

The mass media has recently announced that BitMEX, the cryptocurrency exchange, went offline. The issues that made the brand disappear have been solved and now the exchange is back in the crypto industry offering its services. Most of the people trading on the platform know that the only cryptocurrency that this exchange deals with is BTC. The firm offers credit supports. They do have a list of the most widely used altcoins. However, they set their prices in Bitcoin only. The company is popular in Japan, Russia, China, and Korea. They offer their services to millions of clients worldwide and the recent incident made the participants feel disappointed with the platform, its quality, and irresponsible attitude to trading.

The short-term absence of BitMEX occurred due to several problems related to the trade engine. The exchange had to stop trading to fix its technical issues. To do so, the firm had to go offline for a while. The representatives contacted clients and warned them about the trouble. The company kept updating the information and did all possible to bring the services back online. Also, the managers assured clients that their assets and funds are safe and secure. In a relatively short time, the company resumed trading. Now the exchange is back to its normal life, operating and offering its services to clients.

It is essential to remind that before the BTC halving, the exchange published a report where the team warned participants that the event may cause slowdowns in transactions. They also said that the exchange may charge fees for withdrawals. However, instead of that, the platform went offline. The incident didn’t last for long, yet it made traders worry since they experienced a similar nuisance in March. Back then the exchange went offline due to insufficient liquidity. It didn’t manage to deal with the flow of received trade orders. More than that, the representatives said they suffered an attack that made the exchange go offline. The DDoS attack was rather aggressive and the platform needed some time to restore. The company went offline for a few hours and resumed its work when BTC reached its minimum of 3700 USD.

The opponents claim that all these issues occur due to the schemes applied by the team. Once BitMEX stopped trading, there was no decrease in the BTC’s price.

BitMEX Loses Trust and Respect

Naturally, problems of this sort should make clients lose their trust in the exchange and respect for the team. The team guaranteed that liquidations would not occur during the offline period. Going offline during the most important moments may have led to major changes in the market. After the events that happened two months ago, BitMEX has lost its leading position while trade volumes on OKEx and Huobi significantly increased. Besides, today’s issue made some of the participants of the cryptocurrency community wonder whether those are merely technical problems or there is something more serious beyond them.

BMA, one of the companies that collaborated with BitMEX, sued the team and accused the firm of money laundering, illicit activities, and fraud. They do not believe that the exchange went down just for technical reasons linked to the engine. According to analysts, the platform supported over two billion USD in BTC futures. The data covers the exchange’s trading volume over the past twenty-four hours. The incident was too serious and this kind of trouble has occurred for the second time this year, which makes specialists and participants think that the exchange is playing an unfair game.