Technical outages on cryptocurrency exchanges: legal liability under the MiCA Regulation

IMPORTANT: This article analyzes technical issues on cryptoasset platforms and potential claims under MiCA based on the information available at the time of publication. Currently, any operational disruption, inability to execute orders, withdrawal of funds, or claim against an exchange must be reviewed on a case-by-case basis, the applicable contractual terms, the traceability of the affected transactions, the MiCA Regulation, the DORA regulations on digital operational resilience, and the current guidelines of the CNMV, ESMA, and other competent authorities.

The crypto-asset ecosystem is characterised by episodes of high volatility that can trigger abrupt movements in digital asset prices. During these critical phases, declines can be so rapid that investors are left with very little time to react.

When this situation is compounded by a technical failure on an exchange platform, the consequences for users can worsen significantly. Temporary outages that prevent trading or withdrawing funds during moments of extreme volatility represent one of the most delicate scenarios crypto-asset investors may face.

The overlap between market downturns and technical failures amplifies potential losses and creates a situation of particular vulnerability. For many users, being unable to access their accounts at critical moments can mean being left completely exposed, with no ability to close positions or protect their capital.

A real case of a technical outage during a volatile market phase

Recently, an incident of this kind occurred within the Spanish crypto system on an exchange platform operating in the European market. During this episode of extreme volatility, numerous users were unable to access their accounts, place orders, or properly manage their positions.

IN DIEM Abogados took on the representation of users affected by this technical outage, analysing the situation from a legal and regulatory perspective in order to determine the platform’s liability and structure an effective claim.

This case is a concrete example of how technological failures, when they coincide with moments of maximum market stress, can cause significant harm to investors and give rise to legal liability for crypto-asset service providers.

Impact of technical outages on users

Technical outages on exchange platforms have a direct and considerable impact on users. When, during critical hours, the system does not allow orders to be placed or funds to be withdrawn, investors are left unable to react to adverse market movements. This situation is especially delicate for those trading with high volumes or leveraged positions, as the inability to liquidate assets significantly increases potential losses.

It was precisely this inability to trade that affected the users represented by IN DIEM, who also did not receive clear information about the duration of the incident, the causes of the failure, or the measures adopted to restore the service. This lack of communication created an atmosphere of confusion and uncertainty, intensifying the sense of vulnerability at a time of extreme market volatility.

Platform liability under the MiCA Regulation

These situations are practical cases for the application of Regulation (EU) 2023/1114, known as MiCA (Markets in Crypto-Assets), adopted by the European Union to regulate the provision of services linked to crypto-assets.

Article 76 of MiCA expressly provides that crypto-asset service providers (CASPs) operating trading platforms must have effective systems, procedures and arrangements to ensure that their infrastructures:

a) Are resilient to failures, disruptions or overloads.
b) Have sufficient capacity to process orders and messages even at times of peak activity or market stress.
c) Enable orderly trading, even under extreme volatility conditions.

Technical incidents during periods of high volatility highlight the importance of these obligations: platforms must be able to absorb traffic spikes and episodes of instability without compromising user access or the integrity of transactions. MiCA also reinforces the principle of technological due diligence, which requires the implementation of preventive measures, contingency plans and periodic audits to ensure safe and continuous operation.

Operational and regulatory challenges for crypto-asset platforms

Beyond any isolated failure, situations of this kind highlight the urgent need for the crypto-asset sector to move towards more robust standards, both in terms of regulatory compliance and technological resilience. In an increasingly regulated environment, exchange platforms must be able to anticipate operational risks and ensure service continuity even at times of maximum market stress.

This requires not only a robust, scalable technological infrastructure capable of absorbing peaks in activity and episodes of extreme volatility, but also clear and effective communication protocols that keep users informed in real time in the event of any incident. Transparency and speed in handling issues thus become essential elements in preserving customer trust.

Likewise, these types of incidents show that user trust depends not only on the technical quality of the service, but also on the platforms’ ability to act with responsibility, diligence and clarity in adverse situations.

In the case analysed, IN DIEM’s actions were key in ensuring that the platform acknowledged the technical failure and the real impact it had on users’ ability to manage their positions at a critical moment in the market.

Our actions made it possible to restore the rights of the affected users and demonstrate the practical relevance of the MiCA Regulation in high-volatility situations.

IN DIEM’s approach to claims arising from incidents on crypto-asset platforms

IN DIEM Abogados, a multidisciplinary firm with a specialised New Technologies and Crypto-Assets Department, offers a comprehensive service for managing and processing claims arising from incidents on investment platforms, exchanges or services linked to crypto-assets.

Following an operational incident that affected users’ ability to access their accounts, manage positions or place orders, our legal team carried out an exhaustive analysis of the case, based on the applicable regulatory framework—including the MiCA Regulation—and the general obligations arising from financial regulations and liability for technological failures, and proceeded to file the formal claim against the platform that suffered the technical failure.

• The platform’s functional failure at a critical moment in the market.
• Users’ actual inability to access their accounts, manage positions or execute protective orders.
• The causal link between the technical incident and the losses suffered.
• The direct application of Articles 75 to 77 of MiCA, which impose enhanced obligations on technological resilience and service continuity.

As a result of our specialised legal intervention, the platform acknowledged the technical incident suffered, as well as the direct impact it had on users’ inability to manage or liquidate their positions during the critical period.

The platform adopted corrective measures that made it possible to restore the situation of the affected users—an especially relevant outcome as it is one of the first successful claims under MiCA’s new European regulatory framework.

This case becomes a relevant precedent for users and operators, reaffirming two key ideas:

1. Crypto-asset platforms are expected to be accountable for technological failures that prevent users from acting at critical moments.
2. The application of MiCA opens a clearer, more rigorous and more protective route for defending the rights of clients of exchanges and crypto services.

Specialised claims services

As a firm specialising in digital environments, blockchain and European regulation, IN DIEM Abogados ensures that each claim is handled under criteria of transparency, diligence and good faith, ensuring that platforms act in accordance with the regulations in force.

The firm acts as a legal-technical intermediary, providing users with a professional channel to:

• Validate the incident and its scope
• Analyse the traceability of the affected transactions
• Verify whether the platform’s actions comply with the applicable legal framework

Among the services offered in these types of proceedings are:

• Technical-legal analysis of incidents and vulnerabilities in exchanges and digital platforms
• Preparation of audit reports and compliance assessments regarding MiCA and European regulations
• Legal-technical advice on claims and operational liability
• Representation of users and companies before competent authorities or mediation bodies

In addition, IN DIEM Abogados has already successfully intervened in similar cases, managing to resolve incidents, unblock contentious situations and obtain favourable outcomes for those affected.

The involvement of a specialised firm such as ours strengthens trust in the crypto ecosystem, providing independence, technical rigour and deep regulatory knowledge.

A turning point for the European crypto ecosystem

The episode experienced during this incident leaves not only technical lessons, but also regulatory ones. In an environment in which MiCA is beginning to consolidate as the reference framework, European exchanges will have to demonstrate their ability to meet the required standards, not only on paper, but in day-to-day practice.

Cases like this mark a before and after: on the one hand, they test the resilience of crypto infrastructures; on the other, they show that the effective application of the MiCA Regulation is essential to protect users and ensure market stability.

The exchange’s response to the substantiated claim and the intervention of specialised entities such as IN DIEM Abogados reflect the growing maturity of the Spanish ecosystem, where technology, compliance and responsibility are beginning to converge under a single purpose: making the crypto sector a safer, more reliable and more transparent environment.

IN DIEM Abogados, cryptocurrency experts at your service

At IN DIEM Abogados, we have the best experts in different branches of Law—Criminal, Civil, Administrative, Commercial, and Labor—ensuring at all times the advice and defense of our clients’ interests. Additionally, our firm specializes in the management and coordination of criminal and civil proceedings with groups of affected parties, which allows us to offer an effective joint strategy, optimize resources, and strengthen each client’s position within the process.

Contact IN DIEM Abogados 24 hours a day, any day of the week, without obligation.

We guarantee the best possible outcome, whatever your case.

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