I have been investing in digital currencies through the Kraken bitcoin exchange platform based in San Francisco, California, the supposed best and most secure exchange for digital currencies. I invested most of my money ($45,000+) through their exchange in the up coming digital currency called Ethereum. I had a long margin order open for $25k, which ultimately grew my portfolio up to close to $55k as I locked in at a price of $70~ per ethereum, and it had gone up to $90~ per ethereum in the past week or two. On May 7th, I went to liquidate my position, but the site was down and inaccessible, with them claiming that they were being DDoSed on twitter (https://twitter.com/krakenfx/status/861354304342417408). Noone was able to access the site while this was happening, but their API (which most people didn't use) was still functional. At the same time that the DDoS was happening, there was also supposedly a huge sell order made (or so they claim) which drove the price down from ~$90 to $26~, effectively liquidating my position at a much lower price than what was on any other exchange. In reality, the price of ethereum never even went down below $85 that day on any of the markets except for Kraken (see https://coinmarketcap.com/currencies/ethereum/ for May 7th data).Noone was able to actually access the site in order to act while this was happening, so as the price was driven down by the supposed huge order, all of the open stop losses and margin orders basically were wiped out at the 50~75% discounted price. Within an hour, Kraken was back up and Ethereum was back up to the original and accurate price of $90 per. Since then they have released a statement absolving themselves of all responsibility for the incident, when millions were lost by many victims (with my personal loss being at around $31,000). Many of the victims feel that Kraken orchestrated this or had some involvement in this incident, as they claim that the DDoS and the large order were not related, and many of the things in their statement are extremely fishy. In addition, the type of Margin order that I had in place was using my own Ethereum as collateral for the Ethereum margin order, which meant that when I got liquidated, Kraken (the source of the loan
for my margin) received most of the Ethereum in my account as collateral for the devalued Ethereum in my order. In other words, they got to buy my Ethereum at the artificially/erroneously decreased price of $26 (as opposed to the real price of $90), before it went back to the normal price within the next hour. They were able to net most of my ethereum at a discount and keep it for themselves, and are now refusing to return any of it due to their error and non-functional service. I was not even able to access my account and was helpless through all of this as it was happening and as my money was effectively stolen from me.