Last week both Poloniex and Kraken cryptocurrency exchanges were effected with DDOS attacks which not only caused major lag as well as keeping some users from even being able to log in. I was on Poloniex during these attacks and each time I was able to get logged in again, the pretty much every alt coin had dropped (10% or more.)
Now while I'm a small player and don't have a ton of money over there, it did cause others to lose a TON of money, especially those with margin orders. Essentially, buying on margin is when you are borrowing money to make transactions and when they are closed (or ended) you have to either cash out profits made or pay for losses. It's one of those nice times to be a trading newbie, since I didn't have anything on margin myself.
While this was going on, there were a lot of users in the trollbox (i.e. chatbox) claiming that these attacks were coordinated by one or more huge users so they could manipulate it for their own gains, like making huge sell orders right before the DDOS attack. While users were having issues with the site, the trading itself was not stopped, meaning people couldn't change their orders while it was going on.
It's not known if there was actually insider trading occurring but the law firm Berns Weiss LLP is looking into the incidents. They are currently asking Kraken and Poloniex users who were effected or have information regarding their case to contact them at info@law111.com
While I don't claim if there was wrong doing or not, I have been looking at other exchanges like and @bittrex.
Press Release from Berns Weiss LLP
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