Age-old wisdom rang true for investors watching powerlessly as bitcoin cash valuesplummeted on November 11. Clients of Trading 212 were also content to see bitcoin cash reach a high of $2,500 earlier in the month. After celebrating substantial profits, recent news shows that the company may have counted their chickens before they had hatched.
The unfortunate investors of the British cryptocurrency brokerage watched their profits fade away, unable to act due to a trading suspension as the cryptocurrency nosedived $800 in less than an hour.
According to Trading 212, trading was only suspended for ten minutes. That appeared to be all it took, however, for many investors to lose a lot of their gains. For some, the loss spanned over hundreds of thousands of pounds.
Refusing to accept the situation, 54 affected people set up a WhatsApp group called “People v 212,” with the intention of joining forces to recuperate their lost profits.
The collective group of people affected by the suspension claim to have lost approximately $13.2 million, although some clients have accepted the compromise proposed by Trading 212. These clients received a ten percent portion of their lost funds back from the brokerage. Others held firm in their insistence that Trading 212 should pay out the full amount.
Affected investors claimed that the temporary trading suspension was not the only problem that occurred during that time. They mentioned that Trading 212 did not execute their take-profit or stop-loss orders. The company responded by saying that in those cases and for those clients, the brokerage’s terms of service had been violated.
Co-founder Borislav Nedialkov said November 17 that most of the affected clients had accepted a settlement agreement.
One of the customers involved in the situation felt that Trading 212 bit off more than what they could chew in their service offering. According to Justin Galvin, Trading 212 “exercised too much risk by offering bitcoin cash to entice new customers, only to have those traders beat the market by a hundred times.” […]