Crypto.com Unblocks Users, Rolls Back Faulty LUNA Trades That Did 30-40x

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Crypto.com was one of the few crypto exchanges to keep LUNA exchanges open as Terra’s death spiral saw an unrecoverable price crash of LUNA and UST stablecoin. However, a technical glitch on Crypto.com’s mobile app allowed users to momentarily get away with a 30-40x profit on LUNA trades.

On Friday, Crypto.com abruptly banned users from trading after an internal tool detected the system quoting incorrect prices for LUNA due to an error. Just as Crypto Twitter began raising concerns about trade reversals on the exchange, Kris Marszalek, CEO of Crypto.com, revealed details of a glitch that allowed users to make huge profits.

According to Marszalek, users who traded “during those 59 minutes” are eligible for a buy-back option at the market price of LUNA tokens, which has since fallen to $0.0004685 at the time of writing. Importantly, LUNA reached its all-time high market price of nearly $120 on April 5.

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Marszalek noted:

“The root cause was a combination of several external factors (changes in tick size due to Luna’s death spiral, pullbacks and shutdown of the entire Luna chain) together leading to price dislocations which should generally be considered by index pricing, but have not been.”

After a day of reviewing the LUNA business debacle, Marszalek informed that “all user accounts have been reactivated.”

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As Crypto.com canceled LUNA transactions, the company offered $10 worth of its internal Cronos (CRO) token as a goodwill gesture for affected investors.

Related: Breaking: Terra blockchain officially shut down following LUNA price crash

With LUNA’s price collapsing by over 99%, Terra blockchain validators officially shut down the network in an effort to prevent governance attacks.

Validators should only relaunch the network after implementing a new patch to disable additional delegations.