It is not a new thing in the world of finance, whether conventional or the digital one of cryptocurrencies, for companies to notice loopholes that could have been overlooked in the past but after further review, suddenly seem to become a rather glaring issue.
In these cases it is of the utmost importance that the company deals with the issue in a swift and holistic manner. In a manner that preserves integrity while rectifying all affected parties. We’ve seen different sort of responses in tense situations, some that were professional and some, not so much.
Brazilian Cryptocurrency Exchange Foxbit system bug
Brazil’s largest cryptocurrency, Foxbit, faced a similar situation a few days ago, which started when it noticed a bug in its system that was causing malicious users to take advantage of the exchange and duplicate their withdrawals by using their balance twice. Around 130 of such instances were noticed by the Foxbit team.
The sudden notice of the bug caused Foxbit’s operations team to take timely action for the resolution of the issue, especially when it found out that it had lost 30 Bitcoins to it (valued at around $275,000 at press time).
The team held a livestream on YouTube to show Foxbit users what was going on, and immediately put the exchange on emergency maintenance to fix the bug. However, during the maintenance, some of the data of the exchange got corrupted, and it is being fixed at press time.
The exchange has assured its users that it will be back to fully fledged operations by the 14th of March, and it has not lost any funds to any hacking attempts that could cause users to bear the consequences. The exchange also showed its cold wallets to its users in order reassure them that all funds are safe with the exchange.
It was mentioned by the Foxbit team that the lost funds of 30 Bitcoin would be covered by a specific fund that the exchange had reserved for such scenarios, and that it is in contact with those users who knowingly or unsuspectingly made those duplicate withdrawals in order to resolve the issue in an amicable manner.
So far, the exchange is on track to resume its operations by Wednesday.
Professionalism goes a long way
Saying that things are volatile in the cryptocurrency industry, is an understatement. There’s all sorts of FUD, some based on reality, and some based on mere illusions. Cryptocurrency traders can sell at the drop of a hat, causing prices to decrease, causing more panic. This necessitates professionalism by players in the cryptocurrency industry, players such as exchanges and others who operate while dealing with the funds of many a trader must be professional to provide some sort of certainty in the cryptocurrency industry. Traders and investors must know that their funds are safe and secure at all times. Thus, exchanges like Binance, Coincheck and others who continuously kept their users updated and took the necessary actions to make their users whole command respect and loyalty while showing that there is certainty in the cryptomarket. This is not only a sign of maturity but a sign of growth and certainty in a largely young and growing industry.
Despite the fact that there was an experience of the Foxbit system bug and the cryptocurrency exchange Foxbit losing bitcoin, the company stepped up, took the necessary actions to notify its users of the situation while letting them know how they would resolve bitcoin losses.