The Role of SEDA Experts in a Crypto Platform System Failure
THE CASE
In multiple instances, several crypto pairs’ prices deviated from their market value on Major Crypto Exchange System. Ethereum’s (“ETH”)/United States Dollar (“USD”) and Cardano’s (“ADA”)/USD market value, and reported price decreases were out of line with the market.
As a result of such events, several investors experienced losses, and their accounts substantially diminished in value because of margin calls that were triggered following the flash crash.
THE EXPERTS' ROLE
Our experts were retained in several matters to:
Analyze both ETH/USD and ADA/ USD prices in the Major Crypto Exchange during the event, and compare them against the ETH/USD and ADA/USD prices on other highly active and liquid exchanges used as a benchmark;
Estimate the ETH/USD and ADA/USD prices during the flash crash day and compare them against the benchmark;
Analyze the Exchange market price protection feature;
Analyze the reasonableness of the leverage and margin protocols of the Crypto Exchange;
Analyze the failure of the Major Crypto Exchange System by assessing order book executions, timing, and order type.
THE RESULT
The case was decided with a favorable ruling in favor of SEDA Experts' client.
EXPERT INVOLVED
Robert M. MacLaverty
Robert MacLaverty is a Managing Partner with SEDA Experts based in New York. He specializes in providing financial, economic and testifying expert services to the nation’s leading law firms, investment banks, pension funds, endowments and foundations. Mr. MacLaverty spent the majority of his 18-year Wall Street career in trading and institutional sales of taxable fixed-income securities, derivatives and structured products. After beginning as a financial analyst and derivatives specialist with Morgan Guaranty Trust Company of New York (J.P. Morgan), he worked with CS First Boston (Credit Suisse), Continental Bank (Bank of America), Bear Stearns and Morgan Stanley. He was also a floor trader at the Chicago Board of Trade, serving on numerous committees as an independent member. His combination of prior industry and expert experience provides a unique breadth to his practice.
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