Crypto.com Unblocks Users, Reverses Glitched LUNA Trades That Made 30-40x

Crypto.com was one of the few crypto exchanges to keep LUNA trades open. As Terra’s death spiral witnessed an unrecoverable price drop of LUNA and stablecoin UST.

However, iexclusivenews reports that a technical glitch on Crypto.com’s mobile app allowed users to make a  30-40x profit on LUNA trades momentarily.

After an internal tool spotted the system reporting false prices for LUNA owing to an error, Crypto.com immediately prohibited customers from trading on Friday.

This online news outlet understands that Kris Marszalek, CEO of Crypto.com, gave details about a bug that let customers earn big profits just as Crypto Twitter was expressing worries about transaction reversals on the exchange.

Related: Breaking: Terra blockchain officially halted following LUNA price collapse

Users that traded “within those 59 minutes” are entitled to a repurchase at the current market price for LUNA tokens, which is $0.0004685 at the time of writing, according to Marszalek.

It’s worth noting that on April 5, LUNA hit an all-time high market price of approximately $120.

Marszalek noted:

“The root cause was a combination of multiple external factors (tick size changes due to Luna death spiral, withdrawals & entire Luna chain stopping) together with leading to price dislocations that should typically be caught by index pricing, but weren’t.”

After a day’s review on the LUNA trade debacle, Marszalek informed that “all user accounts have been re-enabled.”

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While the LUNA transactions were reversed, Crypto.com paid impacted investors $10 worth of their in-house cryptocurrency Cronos (CRO) as a goodwill gesture.

The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDK

Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022

Validators for the Terra blockchain formally paused the network to avoid governance assaults after the price of LUNA fell by more than 99 percent.

The validators are only supposed to relaunch the network after applying a fresh patch that prevents any further delegations.

The patch release is out:https://t.co/BZ8t86cuwA

Delegations will be disabled once block production resumes.

The network should go live once 2/3 of the voting power comes online. An update will be provided accordingly. https://t.co/vffpjw7uom

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022