29 Sep 2018

Livecoin Technical Issues Temporarily Affecting Arbitrade Token Holders

Dear Arbitrade Token Holders,

On the afternoon of September 26th, Livecoin.net encountered some technical issues that caused their system to reboot, and the result was the double issuance of some tokens on their exchange when users tried to withdraw certain ERC 20 tokens.

Included in the affected tokens on the exchange were Dignity (DIG) and Loyalty (GIFT), two tokens managed under the Arbitrade corporate umbrella.

Livecoin has been bringing resolve back to their services that occurred with the double issuance of tokens upon withdrawal from their exchange. Most people that withdrew tokens, for whatever reason, on this date have had their accounts temporarily frozen until Livecoin’s technical team can restore order and make all appropriate transfers back into the appropriate accounts before reopening these trading accounts.

We understand that this is a major inconvenience for everyone involved as it has affected several other tokens on the exchange with similar consequences. We are assisting Livecoin and supporters accounts of Arbitrade as much as possible, but Livecoin has told Arbitrade that the situation is under control and they will restore full activity as soon as they are complete.

The Arbitrade team wants to let everyone know that this has no effect on the company or its plans as previously stated and that our board and legal teams have not stopped due to this issue. We trust Livecoin in their abilities to resolve this matter and Arbitrade is continuing to finish off all requirements to be licensed and start operating with the news we have been preparing for the past three months.

This is Livecoin's statement release from the 27th:

LIVECOIN OPERATES IN NORMAL MODE

Created 27.09.2018 18:39

Dear customers, this night, due to the failure of servers, our software rebooted in emergency mode incorrectly. Now all the problems has been resolved, and the Exchange works normal again, please, be assured that all your funds are safe and secure. 


Nevertheless, due to incorrect activation of the main and reserve Ethereum nodes (failure of coordination between the nodes), there were double withdrawals (double-spend) in a few contracts from both nodes. This malfunction affected only a small part of our Ethereum tokens (about 3% of them), and even smaller part of the funds (less than 1%). All your funds are safe, at the moment we are working with customers who received erroneous funds in order to recall the funds back. Trading of DIG asset has been restricted to prevent price manipulations, but it will be available again soon. All other assets are operating in standard mode. 

There are no restrictions on deposit-withdrawal operations, and we are not planning to impose any. All the losses incurred will be compensated at the expense of the Exchange. Actually, this problem doesn't concern 97% of the coins at the Exchange and all the fiat money, it was just about a few Ethereum contracts.

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Sincerely,

Arbitrade Management

https://arbitrade.io | https://cryptobontix.com