Bitfinex Service Disruption Leads to Manipulation Rumors as CME Bitcoin Future Contracts Expired
Bitfinex Halts Operations Right Before CME Future Contracts Expired, Customers Accuse The Exchange Of Manipulation
Bitfinex, the 5th biggest crypto exchange by daily trading volume temporarily halted their operations due to server connectivity issues on August 31st.
According to the exchange’s Twitter feed, their matching engine server was restarted by their hosting provider without notice. They had to restart their servers for the platform to return to normal operations. The service remained offline for approximately 60 minutes.
They stated that they did not lose any data, however, the pending queues were flushed to the database. The company later released a service disruption report to clarify the irregularity to their customers.
However, not everyone was satisfied with the official statement and many went as far as calling out Bitfinex for market manipulation. When the services of the exchange were stopped, Bitcoin [BTC] was trading below the $7000 mark. The encountered connectivity issue faced by the exchange of coincidences with the expiry of the CME Futures Contract.
Many People Across Social Media Were Outraged.
Another Twitter user added,
“If that’s true, then your “hosting provider” is being paid by someone that just manipulated this market right when CME Futures expired. Hope you investigate that. If not, shame on you. The person that restarted that server should be detained.”
Notably, the announcement comes days after BitMEX, one of the leading cryptocurrency exchange platform, was attacked which led to the forceful liquidation of the shorts.