Nexo

Start Earning Up to 16% Interest Automatically

Learn More
Home » News » Bitcoin Crash to $8,200 in 2021 Finally Linked to SBF’s Alameda

Bitcoin Crash to $8,200 in 2021 Finally Linked to SBF’s Alameda

by

Mystery solved: Alameda trader's fat finger crashed Bitcoin to $8K

Bitcoin Crash to $8,200 in 2021 Finally Linked to SBF’s Alameda

Share this article

Former Alameda Research engineer, Aditya Baradwaj, shared a tweet today explaining the trading firm was behind the mysterious Bitcoin flash crash in October 2021 that sent shockwaves through the crypto markets.

According to Baradwaj, an Alameda trader accidentally entered a Bitcoin sell order with the decimal point off by a few spaces, selling the crypto for a fraction of its price at the time.

Within minutes, the price of Bitcoin fell 88%, from around $65,000 to as low as $8,000 on some exchanges before quickly rebounding, as arbitrageurs capitalized on the mispricing.

Major exchange Binance US, where the most dramatic price moves occurred, released a statement attributing the volatility to a bug in one of its institutional traders’ algorithms.

Binance US made this claim to cover Alameda’s mistake. The crash caused tens of millions in losses for Alameda Research and its sister company FTX.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.