Poloniex Moves to Compensate CLAM Flash Crash Victims

The exchange will not charge any lending fees to the victims still active on the platform.

Poloniex, a US-based crypto exchange, has decided to compensate the victims of the CLAM flash crash that resulted in the wipeout of 70 percent of the token’s value.

Per the official announcement, the decision for compensation gained steam with the new leadership of the exchange after it spun off from Circle last year.

The price of CLAM fell by 70 percent last year in May, resulting in the uncovered margin lending pool incurring a loss of over 1,800 BTC.

“Under Circle’s ownership, two steps were taken to repay customers for the losses incurred,” the announcement stated. “The first was an initial bulk payment made to reimburse 10% of each customer’s losses on June 12, 2019. On August 17, 2019, the second step of refunding trading fees began.”

The exchange detailed that 53 victims of the flash crash were fully compensated with that initiative; however, many are still in line to receive their lost funds.

Making a fair move or taking the opportunity of the bear

“First, earlier today we deposited a payment of up to 0.0047 BTC to every impacted customer who has not been fully repaid yet,” the exchange added. “For those of you whose losses are at or below this amount (and there are over 1,000 of you), you have now been 100% repaid for your losses,”

Moreover, the exchange also decided not to charge any lending fees to the victims whose compensations are due until the loss is fully recouped.

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“In addition to the new reimbursement steps we have outlined above, we continue to work hard to pursue and recover the funds from defaulted borrowers,” Poloniex noted.

Meanwhile, many traders questioned the time the exchange has chosen for compensation, given the recent slump in the value of digital currencies.

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