Binance Denies System Error as Trader Claims $5M Loss

A Binance trader has accused the exchange of causing over $5 million in losses due to an alleged system error. The trader claims that more than 30 funding-rate arbitrage positions on Binance's AKEUSDT perpetual contract were liquidated within minutes at around 5:44 a.m. UTC+8 on Sept. 3.

The exchange has denied any technical problems, stating that its pricing and liquidation systems operated normally during the surge in prices. The trader, however, believes that the sudden move was due to coordinated activity in the AKE market rather than ordinary trading.

Binance uses external spot-market data for the AKEUSDT mark price, as it does not list AKE for spot trading. The exchange attributed the liquidations to market conditions and rejected the claim of a technical problem on its platform causing the losses.