Poloniex Crash Leads To Bittrex Blocking US Consumers to Trade in 32 Tokens
Poloniex suffered a $13.5 million flash crash due to a little known cryptocurrency called CLAM on June 6th.
The very next day Bittrex a US-based renowned crypto exchange announced that it would not all its US consumers to trade in 32 cryptocurrencies after June 21st. The 32 crypto tokens banned for the US consumers also include Quantum (QTUM) and Storj (STORJ).
Poloniex got itself tangled into various legal threats and unsatisfied users as the exchange decided to socialize the loss among all the consumers, instead of just those who suffered a loss due to the crash.
Although there is no visible connection between the crash of Poloniex and Bittrex banning the trade of 32 crypto tokens, many speculate that the Bittrex decision came as a preventive measure to crash.
All 32 restricted token will still be listed on the exchange, but it cannot be accessed by the US-based consumers. All the open orders involving any of these 32 tokens would be immediately canceled. The operators have also suggested the users sell any of the banned tokens if they held any in exchange of assets which are still available for trading.
The exchange is also planning to send consumers a detailed email about the ban and blocking of the 32 assets before the ban comes into effect from June 22nd.
Bittrex also confirmed that the banned assets would remain listed on the exchange as long as non-US side arms of the firm keep supporting those tokens, but it would not be available for the US consumers.
This is not the first occasion when an exchange has decided to block certain digital assets or services for US-based consumers. Very recently the Binance has announced that its decentralized trading platform would not be available for the consumers in the USA along with 28 other countries.