A Wall Street Journal report published Jan. 12 claims European eToro users were given just four hours notice that the platform’s margin trading services would be halted on Friday.
EToro users were informed they must increase their margin collateral to 100% in an email sent at 4:46 UTC on Jan. 8. The platform closed the contracts of any European crypto trader who didn’t bolster their margin collateral to 100% by 9:00 PM.
When the firm called in the margin trades, the users’ crypto was automatically converted into U.S. dollars.
Amy Butler, an eToro spokeswoman, said “most traders were in the black” when the margin positions were called, with Bitcoin’s price approaching $42,000 at the time.
However, Fordham University law professor, Jurij Toplak, warned of the future profits that eToro users seeking leveraged crypto products will miss out on, stating:
“There’s a lot of loss here for the users. It’s future losses: if Bitcoin rises to $70,000 now the user