Etoro closes positions in futures, a move causing friction as the platform prepares an IPO for 2021. Officials have not synchronized their watches with those of their clients who are in different time zones . The aggrieved customers denounce this bad timing.
Fence on the sly
European users ofeToro complain that they were warned at the last minute that their futures positions were closed.
The platform had made the decision to close them in the face of the extreme volatility of the market.
European investors indicate that they had received an email informing them of this closing on the evening of January 8, 2021.
The email advised them to increase the margin to 100% if they didn’t want their position closed at 9 p.m. GMT the same day.
The message also stated that clients with sufficient balances could keep their positions open by increasing their funds, while those with insufficient balances were given the option to close other positions to free up funds.
Hours later, many users flooded Twitter with comments stating that all of the leveraged positions had been closed.
Set the record straight in front of the public and regulators
Avocado Slavko Vesenjak, which represents several clients ofeToro in Europe, maintains that the platform has not respected its commitments to its customers.
This 4-hour notice is insufficient to notify users in different time zones.
The public relations manager ofeToro, Amy butler, mentioned that the majority of customers ofeToro were not affected by these changes.
She explains that the platform is working to resolve issues experienced by affected customers.
According to Butler, this decision to increase minimum deposits was made following a sharp increase in demand.
Professor of Law Jurij Toplak stated that aggrieved customers will turn to the Cyprus Securities and Exchange Commission in order to revoke the license ofeToro.
CEXs can afford to make this type of decision unilaterally, even for trading cryptocurrencies or derivatives that are nevertheless the result of decentralized projects. EToro closes its doors at the last minute without really worrying about the impact of such an action on its customers. These are supposed to swallow the justifications of the platform’s public relations manager. When will cryptos win over fiats, and DEX over CEX?
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