When CEXs act as black boxes

When taking the first steps in the world of cryptocurrencies, centralized exchanges are almost always preferred. Thanks to their simple and intuitive user interface, the user or trader often can live an excellent user experience. But can you completely trust centralized exchanges in terms of security and privacy?

In this article, we will analyze the case of Luna reverted transactions by Crypto.com and whether centralized exchanges are really safe.

What happened to Terra-LUNA in Crypto.com?

The collapse of Terra-LUNA caused a death spiral in the whole crypto market. One of the most popular centralized exchanges Crypto.com, on May 12th, has shown its traders’ mispricing of the LUNA’s token. Due to the crash of Terra, customers who made LUNA transactions had their trades reversed and lost more funds due to this inconvenience. This event made users complain, and some traders claimed it stole their funds. In order to hush up rumours and…