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- Crypto exchange Gate stated that an operational error involving its BENUSDT perpetual futures contract affected about 200 accounts on Sept. 30.
- A naming conflict between Franklin Resources and an unrelated crypto token caused a $0.33 dividend adjustment to trigger forced liquidations.
- Gate has not released a detailed incident report explaining its internal controls or how erroneous credits for long positions will be handled.
Crypto exchange Gate says an operational error involving its BENUSDT perpetual futures contract affected about 200 accounts on Sept. 30, triggering liquidations and abnormal balance displays. A screenshot shared by one trader showed an account balance of about negative $1.46 million, although Gate said affected users would not bear the resulting losses.
Gate attributed the incident to a naming conflict between Franklin Resources, which trades under the ticker BEN, and an unrelated crypto token using the same ticker. The exchange said it identified and corrected the problem within minutes.
$0.33 Dividend Was Applied to Crypto Contract
Gate had announced plans to process Franklin Resources’ $0.33-per-share dividend through BENUSDT at 08:00 UTC on Sept. 30. Under the announced settlement rules, long positions would receive the dividend adjustment while short positions would be charged the corresponding amount.
The BENUSDT contract involved in the error instead tracked a meme token that Gate had listed earlier in September. Gate’s own market data showed the token trading around $0.0005, making a $0.33 adjustment hundreds of times larger than its market price.
Short Positions Faced Liquidations
The incorrect adjustment depleted margin on some short positions and triggered forced liquidations even though the underlying crypto token had not experienced a comparable price move. Accounts using shared margin could also see other positions affected when available collateral was reduced.
One trader posted a screenshot showing a negative balance of approximately $1.46 million. The screenshot reflects the displayed account balance during the incident and does not establish that the trader ultimately incurred a realized $1.46 million loss.
Gate Says It Will Cover Losses
Gate Support said approximately 200 accounts were influenced and that balances were being restored. The exchange also said it would assume responsibility for losses resulting from the error.
“An operational error occurred due to a naming conflict, affecting a total of approximately 200 accounts.”
Gate had not released a detailed incident report explaining its internal controls or how the incorrect contract mapping occurred at the time of publication. The exchange also had not publicly detailed how erroneous credits received by long positions would be handled.
