CRYPTO-CURRENCIES NEWS: International Group Claim from Traders vs. Bitcoin Exchange Kraken

The group claim, connected with a sharp collapse of stock prices in May, was raised against the Kraken exchange start-up startup.

Two months later, five Exchange customers say Kraken operators negligence, breach of contract and illegal enrichment of the exchange. They say that under conditions of DDoS type attack ("denial of service"), the exchange had to suspend trade, because The attack affected the activities of the stock exchange as a whole.

Judging by the court documents, the plaintiffs are five - one from the United States, two from Israel and two from the United Kingdom. In this case, the company Payward Inc., which owns the Kraken exchange, is called the only defendant. Five customers claim that they lost $ 329,000 on air (3414 ETH) in total.

At the moment, this cost could grow to $ 911 thousand.

According to the data of social networks, CryptoCoinCharts.info and stock exchange orders, then the price of the ether dropped to $ 26, which led to a wave of losses.

As a result, some customers complained that their positions were sold unfairly, while others claimed that fraud was committed. The next day Kraken published a statement on the incident, noting that the internal investigation "did not find evidence of coordinated attacks or market manipulation," and that "the internal exchange systems functioned normally."

At that time, the management of the exchange said that it was not going to compensate the users, since "Is not responsible for the outcome of events occurring on the market or for losses associated with unavoidable DDoS attacks."

Five plaintiffs are sued where the exact amount of damage is problematic. They are also going to get compensation for legal costs.

The suit was filed on behalf of the plaintiffs by the attorneys of Silver Law Group (Florida), which participated in lawsuits against the Cryptsy stock exchange (now nonexistent), and against the startup Coinbase. In addition, lawyers Wite & Kapetan, another law firm from Florida, will be involved in the case.