According to a recent report by Arkham, a false alert was mistakenly issued regarding the transfer of BTC from US government wallets and the now-defunct MtGox crypto exchange.
This erroneous message led to a rapid decrease in BTC prices on April 26, with the cryptocurrency dropping by 7% in under an hour – from $29,800 to $27,780.
While some industry experts believe that the Arkham notification may have been the reason for the sudden price decline, the company has since issued an apology and clarified that the alert was due to a bug in its system.
The initial report was first picked up by Twitter users who quickly spread the information.
However, shortly after, Arkham posted a message acknowledging the error and stating that a fix had been implemented for the bug in its notification mechanism.
The company emphasized the importance of verifying information online before taking any action, given the significant impact that alerts can have on the market.
It is important to note that the fall in BTC rates occurred between 19:17 and 20:01 UTC, while the first user to notice the error published the message at 20:07 UTC.
As a result, Arkham claims that there was no way they could have prevented the drop in prices.
MtGox, which was once the world’s largest bitcoin trading platform and accounted for 90% of the total trading volume, filed for liquidation in April 2014 due to a massive loss of 850,000 BTC from a hacker attack.
The bankruptcy proceedings are still ongoing, and customers who filed claims on time will soon begin receiving compensation.