Ethereum is plunging despite flash-crash victims getting their money back

Ethereum is under pressure on Monday, trading down 13.26%, or $40, near $263. The selling comes despite a late Friday blog post from GDAX - an exchange for cryptocurrencies like ethereum and bitcoin - promising that victims of last Wednesday's flash-crash will be made whole. Ethereum tumbled from $296 to $0.10 in a matter of minutes before recouping those losses.

GDAX had initially told customers would not receive a refund but reversed course a few days later.

Another possible catalyst for the selling could be a hoax circulated over the weekend that co-founder Vitalik Buterin had died. Vitalik responded by posting a tongue-in-cheek selfie on Twitter with a hash code from a recent Ethereum block - proof that he was still alive.

Even with Monday's selling, Ethereum is still up 3,181% in 2017. The cryptocurrency's rapid rise has drawn the attention of cybersecurity pioneer John McAfee, who on Friday announced his company would begin mining for Ethereum.

Investing.com