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BlockFi Crypto: What to Know About the Winklevoss Twins and the Botched Bitcoin Promo

BlockFi is having an eventful month. On the tail end of a not-so-smooth Bitcoin (CCC:BTC-USD) promotion, the crypto exchange is launching its newest Bitcoin product and ruminating on the aftermath of its mistaken BTC giveaway. Hopefully, the BlockFi crypto drama can be placed in the rear-view mirror.

A close-up of the website for BlockFi.

Source: Jarretera / Shutterstock.com

BlockFi is one of the most popular exchange options for crypto traders. The New Jersey-based company offers typical crypto exchange functions of buying and selling. But, it supplements its exchange with other products, like crypto interest accounts and crypto-backed loans.

In recent years, BlockFi has found support from many crypto celebrities, including Tyler and Cameron Winklevoss. The first Bitcoin billionaires have partnered with BlockFi via their Gemini Exchange. Gemini holds BlockFi’s crypto assets in custody.

Even with the backing of two of the most important figures in crypto, BlockFi is not immune to the pratfalls of a simple mistake. However, this simple mistake appears to be quite a costly: BlockFi reportedly mistakenly sent out Bitcoin to users’ wallets. One customer reports receiving 701 Bitcoin.

BlockFi Crypto Drama Heats Up

The mistake comes from a promo ran in March. According to the company, users were meant to be paid in a USD stablecoin rather than BTC. However, BlockFi mistakenly sent out BTC.

The BlockFi crypto drama is stirring up conversation over how the company deals with the situation. Many argue that the transaction counts as a gift, accidental or not. Experts have chimed in that the withdrawal of the funds is theft. BlockFi is reaching out to the users now in an effort to recoup the remaining BTC.

This week, BlockFi is trying to put the blunder behind it. Saturday, May 22 is Bitcoin Pizza Day, and the company is taking the time around the holiday to advertise its coming Bitcoin Rewards credit card. A final tweet on the matter came May 19, and since then, the company is looking only toward promotion. Investors are still staying on the edge of their seats in anticipation of news about the lost Bitcoin rewards.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/05/blockfi-crypto-what-to-know-about-the-winklevoss-twins-and-the-botched-bitcoin-promo/.

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