Margin lenders Poloniex will receive compensation from the exchange for the loss of BTC

Poloniex returns trading commissions to creditors who have lost funds as a result of the May market crash associated with the CLAM cryptocurrency.

According to an official blog post, the exchange will return the lost funds to creditors, reimbursing trading fees from June 6. Recall that margin lenders Poloniex lost 1,800 BTC (about $ 13.5 million) due to a sharp drop in the CLAM cryptocurrency rate on May 26. Then the price of CLAM fell by 77% in just 45 minutes.

Poloniex merged the lost coins into the BTC exchange margin lending fund. A total of 0.4% of users of the Poloniex exchange lost 16.2% of their funds in the pool to cover overdue loans. At that time, Poloniex stated:

“The collapse rate and lack of liquidity in the CLAM market made it impossible to process all automatic liquidations of margin positions in CLAM, as is usually the case in the liquid market. In addition, a significant part of the total cost of loans was secured in CLAM, therefore, the positions of borrowers and their collateral lost most of their value at the same time.

On June 14, Poloniex began recovering loans from affected accounts and distributed 180 BTC among 10% of those affected. In accordance with the new policy, lost funds will be returned to BTC by canceling exchange fees until full repayment. In addition, Poloniex closed the margin trading of BTS, CLAM, FCT and MAID.