Thursday, June 17, 2021

Crypto Lending Firm Sends Over $25 Million in Bitcoin (BTC) To Customers Accidentally

BlockFi, a crypto lending platform, has reported that it accidentally sent a huge sum of Bitcoin (BTC) to some of its customers.

The error was noticed and reported by users last week via a post on the BlockFi subreddit. 701 BTC “bonus payment” worth over $25 million at the time of the incident was accidentally sent by the firm.

Read Also: Bitcoin (BTC) Worth $2.3 Billion Remain Frozen As OKEx Investigation Continues

The huge sum of Bitcoin (BTC) originates from a March trading campaign that rewards customers that attained a specific volume target.

As stated by BlockFi, its initial intention was to send Gemini dollars (GUSD) to customers who took part in its trading promotions, but mistakenly transferred the amount mentioned above in Bitcoin (BTC).

According to the firm, some of those who received the BTC decided to withdraw, while some understood the mistake and returned the funds. However, about $10 million is still outstanding.

Read Also: Elon Musk’s Tesla Suspends Vehicle Purchase with Bitcoin. Is DOGE Replacing BTC?

In a series of tweets on 19th May, BlockFi narrated the incident as follows:

“On May 14, BlockFi made an incorrect transfer in BTC instead of GUSD to clients who participated in our trading promotions. The vast majority of these transactions were quickly identified and reversed immediately.

“A small edge case of approximately 100 clients were able to access the erroneous deposits and withdraw funds from the platform on May 17.

“The company’s exposure is currently approximately $10M and decreasing quickly as clients are returning funds. We are incredibly grateful for our clients understanding the mistake and returning funds that did not belong to them.

“BlockFi holds crypto and dollars on our balance sheet as part of our normal operating procedures. The outstanding amounts are a small fraction of the loss reserves that we plan for as part of our normal accounting policies.

read Also: Morgan Stanley Considers Bitcoin Bet for $150 Billion Investment Unit

“The crypto that was erroneously withdrawn is entirely unrelated to client funds. All client funds have been safeguarded throughout this incident.

“We have learned from this mistake and have immediately implemented procedures to prevent issues like this from occurring in the future. Our business continues to operate normally at this time. We sincerely appreciate our clients for working with us through this time.”

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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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