By Beaxy, the latest exchange in the neighbourhood has been drawing a lot of attention lately. With a lot of American user shifting to Beaxy after various popular exchanges like Binance shutting their doors down, the new exchange has seen a constant rise in trading volume. But the exchange recently halted trading after a supposed 40% crash of the popular cryptocurrency Ripple (XRP), which is said to be a purposeful act by a group of people.
As per the blog post on the Beaxy support page on August 12, the exchange saw a sudden surge in the XRP trading volumes followed by a huge sell-off that crashed XRP by 40% of its price compared to other exchanges. Through the blog, the exchange notified the community that they’d halt trading to further investigate the event. The blog post reads:
“We recently experienced unusual high volume activity on XRP-BTC. As a result and precaution, we are temporarily halting all trading activity and withdrawals across the exchange as we investigate.”
As per the tweets from the Beaxy twitter page, various exchanges were targeted with an “XRP partial payment exploit”, the exchange is now rolling back all trades to identify the exploit. The team also informed their users that any misplaced funds would be credited to the rightful owners but this will take some time. Until the process is complete, all trading activities will be suspended.
KYC as the only hope
The team assured their community that users responsible for the crash can be identified using the exchange’s internal Know Your Customer (KYC) procedures. The exchange further mentioned that strict steps would be taken against this, but whether the guilty would face legal consequences is still unknown.
They tweeted:
Previously, Beaxy had faced an attempted hack, but luckily neither funds nor data were stolen.
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