The popular currency exchange Kraken has faced a collective lawsuit of traders against it as a result of recent failures in work.
At 8th and 9th of May, popular cryptocurrency exchanges Poloniex and Kraken faced technical issues, which, according to the users, led to a financial loses. Because of the incident, both sites became the object of harsh criticism. Also after a while there was information that a class action suit could be filed against Poloniex.
The same measures were not applied to Kraken, although the law firm Berns Weiss LLP, which specializes in consumer and investor protection, took up the cause of the California stock exchange.
Now it became known that a collective claim against Payward Inc, which acts on behalf of Kraken, was filed by five investors. The exchange is accused of inaction, breach of contract and unfair enrichment.
Claimants are residents of the United States, Israel and the United Kingdom, the total amount of claims is 3,414.078 ETH (about $ 329,000 at the rate of $ 96.32 at that time). To date, this amount would have been more than $ 900,000. The applicants are represented by the law firm Silver Law Group from Florida.
Kraken's official announcement about technical issues was posted on Reddit. It says that an internal investigation "did not find any evidence of a coordinated attack or market manipulation" and that its internal systems had operated normally. It also added that "cannot compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks."