Bitcoin

Recent Kraken and Poloniex DDoS Attacks investigations

JP Buntinx | May 11, 2017 | 11:00 am
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Bitcoin

Recent Kraken and Poloniex DDoS Attacks investigations

JP Buntinx | May 11, 2017 | 11:00 am

Exchanges often have to deal with attacks against their services. In recent weeks, both Poloniex and Kraken have suffered from DDoS attacks. Or that is what both companies claim, at least. Berns Weiss LLP is currently investigating these attacks. More specifically, the company is trying to gauge whether or not the exchanges are responsible for user’s losses due tot is outrageous. An interesting turn of events, that much is certain.

Berns Weiss LLP is on The Case

It was to be expected these exchanges would face some scrutiny. Both Poloniex and Kraken allegedly had to deal with a DDoS attack these past few weeks. As a result, a lot of users lost funds in the process. Especially margin traders saw orders getting liquidated. Moreover, Kraken executed a large seller order for ETH, crashing the coin’s price in mere minutes.

As a result of a DDoS attack, it is impossible to access your account on an exchange. However, this causes even more annoyance among platform users. Users being unable to access funds is not a pleasant experience. Moreover, it prevents them from managing their margin trading accounts. This debacle affects both Kraken and Poloniex, as both exchanges suffered from similar attacks.

It is now up to Berns Weiss LLP to investigate the matter. The company was contacted by multiple people seeking legal action against both companies. A major sell-off of assets right before a DDoS attack seems suspicious. Poloniex saw its XRP price crash hard during the attack.  Other altcoins did not fare much better during this period of increased trading volume.

Will Poloniex and Kraken be Punished?

Any customer of either exchange is advised to contact the law firm moving forward. Berns Weiss LLP will gather all of the evidence and conduct their investigation accordingly. The company has plenty of experience when it comes to protecting consumer rights. Moreover, the firm has a Virtual Currency and Blockchain Technology practice group to take care of these matters. It is unclear what the result of the Berns Weiss LLP investigation may be, though.

All of this goes to show exchanges will be scrutinized for suspicious activity. If no one can access their account, yet sell orders still take place, something is wrong. Liquidating margin trading accounts is also rather dubious. It is anybody’s guess as to what will happen. It is doubtful either exchange will be held liable for these actions. Both companies have a ToS in place absolving them of these types of losses, by the look of things.

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