Binance App Stops For One Hour, Hundreds Of Crypto Traders In France And Italy Demand Refunds

Para trader Prancis dan Italia tuntut Binance kembalikan dana mereka (Binance)

JAKARTA – A number of users of the Binance crypto trading platform want their money back. Users in France and Italy are planning to take Binance to court after Changpeng Zhao's platform stalled on May 19.

According to Bitcoin.com News, Binance's customers, consisting of traders, have a leveraged position in the market and cannot reduce or close it. On May 19, the Binance app was suspended for more than an hour. This incident made traders unable to manage their funds.

Now, those traders are trying to take Binance to court to demand their refund. In this case, Binance is operating in France and Italy.

Users affected by the termination of Binance's service are reportedly going up against the number 1 largest crypto exchange platform in the world. Hundreds of Binance users in France and Italy, who suffered losses due to the application freeze on May 19, agreed to take Binance to court.

One of the affected traders is Anand Singhal. He is a coding expert who entered leverage of more than 50 thousand US dollars (equivalent to IDR 725 million). As Singhal watches, the price suddenly drops and he tries to get out of his position to avoid losses.

But Singhal couldn't get out of the market when Bitcoin and altcoins experienced a sharp drop in price when the market crashed. The Binance app doesn't seem to be able to cope with the high load of ongoing transactions. At the same time hundreds of thousands of traders are trying to do the same thing as Shinghal, which is to get out of the market.

The Binance app was freezing for more than an hour. Singhal and other traders have lost money. Recently, they reversed course and will fight Binance at the court.

The Wall Street Journal reports that as many as 700 Binance users in France are demanding their money back. Meanwhile in Italy, the number of users who petitioned Binance was even higher. They are demanding a refund because the Binance app was suspended some time ago.

However, the crypto market often crashes due to negative external sentiment. A number of crypto trading applications have also been recorded to have experienced freezes or service terminations for a certain period of time. The largest crypto trading platform in the United States, Coinbase has also suffered the same fate as Binance.

Another US crypto trading platform, Robinhood, had a similar experience. In fact, Robinhood had to swallow the bitter pill because it was fined by the Financial Industry Regulatory Authority (FINRA) amounting to 70 million US dollars, or around Rp. 1.1 trillion.

In recent weeks, the Binance platform has received warnings from a number of countries around the world including the UK, Japan, Cayman Islands, Ontario (Canada), Thailand, and following Singapore plans to tighten oversight of Binance.