According to the source, citing a Pdax user and a lawyer, users do not believe they violated laws or platform rules by buying Bitcoin at this price. Instead of taking legal action against its users, for now, it is said that the exchange has locked them out of their accounts.

Since cryptocurrency exchanges deal with a large amount of funds every day, such technical errors can be quite costly. Moreover, besides system errors and outages, hacking presents another contemporary problem for such platforms. Some exchanges have not recovered from hacking incidents, in which large amounts of money were stolen. Among closed cryptocurrency exchanges are Russian-based Livecoin and New Zealand Exchange Cryptopia. 

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According to the source, the funds in cryptocurrency XSN were moved from a wallet owned by Stakenet, which had been in a dormant state since the previous hack. The source also says that the company did not expect this to happen as the funds were supposed to be in control of the liquidator Grant Thornton that was contacted for comment.

The cryptocurrency exchange started the liquidation process in May 2019. In December 2019, the company’s official liquidator, Grant Thornton, posted an announcement on its website about the creation of the claims portal. Using this portal, clients of the exchange could make claims to recover their funds.

Cryptopia is not the only cryptocurrency exchange that could not recover from a hack. This year, Russian cryptocurrency exchange Livecoin closed down, unable to restore its operations after a hack on Christmas. Hackers allegedly gained control of the organization’s servers and modified the prices of various cryptocurrencies.

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