Florida-based Silver Law Group, along with another Florida-based law firm, Wites & Kapetan, have filed a class-action lawsuit against Kraken, a leading #cryptocurrency #exchange based in the U.S., on behalf of the five (5) users they represent that were affected by the #Ethereum ($ETH) flash crash this past May on Kraken, a leading based out of the United States, as reported by @CoinDesk.
On 07 May 2017, ETH/USD plummeted from 94.85 levels to 26 levels. The startup said that it was under heavy DDoS attack:
Later, Kraken issued an official statement explaining the attack. Importantly, it said that it did not find any evidence of a coordinated attack or market manipulation in its investigations. Furthermore, it said that it cannot “compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks.”
Within two months of the said incident, a lawsuit has now been filed. According to court documents, it has filed on behalf of five plaintiffs by the Florida-based Silver Law Group. Another Florida-based law firm Wites & Kapetan is also involved in the lawsuit.
Among the five users, a total of 3,414.078 ETH (approximately $329,000 at a price of $96.32) was forcibly liquidated. The document states:
“KRAKEN’s conduct has caused Plaintiffs and the Class to suffer damages in excess of Five Million Dollars ($5,000,000.00).”
According to CoinDesk, the plaintiffs are seeking certification for class-action status, as well as unspecified damages and compensation for legal fees.
This 'Full Disclosure' I found to be quite interesting as well:
![file[30423].jpeg](https://images.hive.blog/768x0/https://steemitimages.com/DQmYcyUAEMtPCgb1m1Cg9C1SLowuryuppWmRBHCBWFUnHZP/file%5B30423%5D.jpeg)
i'm new to trading, or rather i've not even started, but how can this happen at all? shouldn't there be people willing to sell at a certain price? how can the price ever go down even for a second to such low levels without someone willing to sell at that price? you can't buy if no one wants to sell right?
So i guess these people made sell offers that low? or put their money in the hands of a bot who sold it for them.
Unless kraken made the sell order for them, how can any of this be krakens fault?
is crypto going down for real or just few days