Deribit Absorbs $235,000 Loss Caused by Liquidation Algorithm Bug
Cryptocurrency exchanges are often targeted by criminals in an effort to steal data or money. However, those are not the only threats they face. Some problems are the result of internal errors, such as a trading algorithm gone awry.
In the case of Bitcoin futures exchange Deribit, its liquidation algorithm caused major losses. As a result, the company has put all Bitcoin futures on hold for a brief period.
It is never good to see a trading platform or options exchange suffer at the hands of its own algorithm. While this piece of code is expected to perform flawlessly every single second of every single day, a bug can always appear out of the blue.
Unfortunately, this also means such algorithms can cause major losses among users or even the parent company. In the case of Deribit, the company suffered a liquidation algorithm problem which forced them to halt Bitcoin futures.