Poloniex Liquidates Long Positions During DDoS Attack
Delaware-based virtual currency exchange Poloniex announced that it was "working to mitigate" after an apparent distributed denial of service (DDoS) attack affected its servers.
DDoS; we're working to mitigate.— Poloniex Exchange (@Poloniex) May 9, 2017
On May 8, 2017, at 7:57 PM (PST) Poloniex tweeted the announcement, which was met with mixed reactions and questions from those wondering when the exchange would be live again.
Charts show that around the time of the attack, a selloff of XRP (the currency of Ripple Labs) caused the price to drop. Mirroring the scenario that occurred within the Kraken exchange a day before, Poloniex traders holding margin positions found themselves unable to manage their accounts and were forced into liquidation.
On Twitter, hours after the initial DDoS attack announcement, Poloniex said that coins are safe and the exchange would return in "about 15 minutes."
Coins are safe. We should be back up in about 15 minutes.— Poloniex Exchange (@Poloniex) May 9, 2017
Users responded with criticism:
@Poloniex No they are not - the marked dropped and margins got liquidated so coins are not safe - you need to compensate those users for their losses— CryptoPhil (@H4ck3rPh1ll) May 9, 2017
@Poloniex Poloniex conducts insider trading and manipulates the market and pulls the site down for a reason, lawsuit is what you need.— Clever Emu (@CleverEmu) May 9, 2017
Perhaps taking a note from the suggestion made on twitter, at least one person created a website designed to bring a class action suit against the exchange. In short order, however, the site address (http://poloniexlawsuit.com/) was redirected to forward to the Poloniex exchange site.
The latest notice on Poloniex’s site was a post made by ‘OldManKidd’ at 7:49 pm (PST), but no further announcements have been made about the DDoS attack or the events which followed.
Poloniex has not responded to ETHNews with a comment. ETHNews will provide additional coverage as this story develops.