Regulators became interested in the instant collapse of the Ethereum rate on GDAX in June of this year American regulators became interested in the events that took place on the popular cryptocurrency exchange GDAX in June. Then, as a result of an instant fall in the rate, the second largest cryptocurrency in terms of capitalization lost most of its value before traders could react to it. Bloomberg writes about this with reference to its own sources.

Regulators are interested in the instant collapse of the Ethereum rate on GDAX in June this year

Events taking place on popular exchange cryptocurrency GDAX in June, American regulators became interested. Then, as a result of an instant drop in the rate second largest by capitalization, the cryptocurrency lost most of its value before traders could react to it. About writes Bloomberg with reference on our own sources.

The United States Stock Exchange Trading Commission (CFTC) reaches out to Coinbase Inc. with the demand to clarify the situation on the GDAX cryptocurrency exchange owned by it, when the Ethereum rate within a few milliseconds fell from $ 317.81 to 10 cents, after which it quickly recovered.

Among the subjects of interest of the agency is called margin trading and its role in this incident, since it is this option that is formal basis for regulation of cryptocurrency exchanges by the Commission for Futures Trading. GDAX users have the ability to borrow funds from the exchange, which allows them to use for bidding more funds than they keep in their accounts. Let's say a user with $ 5,000 on their balance can buy or sell digital tokens worth $ 15,000 if the exchange provides him with a 3: 1 leverage.

The CFTC sent a letter to Coinbase with a number of questions regarding the situation, including questions about margin trading. The ability to conduct margin trading was introduced on GDAX in March this year in order to attract investment funds to the platform. After the June fall, this option was disabled.

"Being regulated financial institution, Coinbase complies with the requirements of the regulators and fully cooperates with the regulators, ”the company wrote in an email. “Following the events in the GDAX market in June 2017, we independently contacted a number of regulators including the CFTC. We have also credited funds to the accounts of all clients involved in the designated events. We do not know anything about the official investigation ".

CFTC spokesman declined to comment on the situation.

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