Blockfi incorrectly sends free Bitcoin to users and asks them to return it
Blockfi incorrectly sends free Bitcoin to users and asks them to return it
- Blockfi intended to send the users their bonus payments in US dollars, but instead sent the payments to BTC with an exposure of $ 10 million.
- It asked the users to return the money and even suspended withdrawals for others, but some were already started with the free Bitcoin.
One of the largest cryptocurrency companies recently made a terrible mistake that millions of dollars could have cost. Blockfi intended to pay some of his users to pay in US dollars as part of a campaign organized by him. Instead, Bitcoin was sent to the users, making them massively overpaid. It then moved quickly to restore the BTC, but reports that some users had already withdrawn it.
The crypto loan based in New York had carried out a giveaway for its users. According to his website, payments in Gusd should be made, a stable coin issued by the Gemini exchange. About a week ago, however, it noticed a coarse mistake, in which it had paid its users in BTC instead.
Some customers who took part in the trading campaign in March may see an inaccurate bonus payment in their transaction history. Our team is working on a solution and the right amounts will be announced shortly.
- Blockfi (@Blockfi) 15. May 2021
"Bring our bitcoin back"
The company immediately got to work and tried to undo the payments. However, as CEO ZAC Prince Telled Bloomberg, some of the users had already withdrawn the BTC. Prince has downplayed the number of users who have abolished the BTC and stated that there were fewer than 100 and that the company's commitment was around $ 10 million. This number is steadily decreasing because more and more users work with the lender and return their BTC.
Prince also claimed that the company had taken measures to ensure that such a scenario does not occur again.
Blockfi leads to damage reserves as part of his accounting principles and this is a fraction of the existing damage reserves - i.e. no negative effects on equity or ongoing platform operation. The problem that caused the withdrawals has been remedied and additional safety precautions have been developed to avoid similar problems in the future.
The CEO also emphasized that the error had not affected the company's business. Despite the incorrect deposits, Blockfi is still reporting record volumes on its platform.
Auf Reddit, Blockfi also published an explanation to reassure its users: "The situation has no influence on the ongoing operation of Blockfi, and measures were taken to ensure that such a mistake is no longer possible in the future. The last publicly registered AUM from Blockfi was not affected to 15 billion USD.
Blockfi users used social media to show some of the BTC they had received. For a user, the company has credited 701 BTC instead of $ 701. The BTC supply is now worth $ 26.6 million, the Bitcoin price is now $ 38,000. The user did not announce whether he had returned the crypto to the company.
I am right if I think that blockfi should send $ 701, but this person 701 Bitcoin? 😬 pic.twitter.com/hlftckswya
- ric burton (@ricburton) 19. May 2021
It is nothing new
The incorrect deposit is not uncommon in the financial service world. In the greatest case in recent years, Citibank has accidentally transferred $ 900 million to some of its customers. However, the bank intended to transfer $ 8 million, but made one of the biggest mistakes in banking history. Some customers returned the money, but over 500 million US dollars were not returned, and customers decided to hold on to the money. The Citibank brought the matter to court and surprisingly and that has lost Money.
Source: Crypto-news-flash.com
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