Binance Denies System Error in $5M AKE Loss Allegations

A trader recently claimed that more than $5 million in losses were incurred by over 30 funding-rate arbitrage positions on Binance's AKEUSDT perpetual contract. The contract surged from $0.0076 to nearly $0.045 on September 3, prompting the trader to accuse the exchange of a system error.

Binance has denied these allegations, stating that its pricing and liquidation systems functioned normally during the surge. The exchange attributed the liquidations to market conditions, rather than an exchange-related issue.

The AKEUSDT perpetual contract relies on external spot markets for its mark price, as Binance does not list AKE for spot trading. This means that the index and mark-price process were designed to reduce the effect of an abnormal print or short-lived price gap on a single exchange.