BlockFi made a massive blunder that resulted in the crypto lending and trading platform accidentally sending out large sums of Bitcoin (CCC:BTC-USD) to some users.
The platform was running a promotion that saw it offer up stablecoin cryptos tied to the USD to users. However, it made the mistake of sending these promo bonuses to users in Bitcoin instead. As a result, some users saw massive amounts of BTC added to their accounts.
Normally that wouldn’t be a problem. BlockFi could just reverse the mistake and move on. However, the mistake is still causing issues for the platform and its users for a few reasons.
First off, BlockFi might not be able to get some of that Bitcoin back. One user was sent 700 Bitcoin worth about $28 million. They immediately withdrew the funds. Now BlcokFi is threatening legal action against this user. They’re also offering up $500 for the return of the BTC.
Another problem is that the platform’s system is sending out error messages to users not caught up in the issue. That includes one accused of withdrawing the promo bonus who didn’t do so, reports Forbes.
BlockFi also took to Reddit with the following statement about the blunder.
“On May 17, 2021, fewer than 100 clients were incorrectly credited with cryptocurrency associated with a promotional payout that did not belong to them. BlockFi has contacted these clients and is working with them to rectify the issue.
The situation does not affect any of BlockFi’s ongoing operations and measures have been taken to ensure that an error like this will not be possible in the future. BlockFi’s latest publicly reported AUM is $15B as of Q1 2021. Client funds are not impacted and are safeguarded.”
Investors that are looking for other crypto news Wednesday have plenty to catch up on.
That’s thanks to several cryptos seeing major movement today as prices crash. Among them are Bitcoin, Ethereum (CCC:ETH-USD), Dogecoin (CCC:DOGE-USD), Cardano (CCC:ADA-USD), and XRP (CCC:XRP-USD). You can learn more at the links below.
More Wednesday Crypto News
- Crypto News: Why Is Crypto Crashing Today?
- Crypto Crash 2021: 10 Best #BuytheDip Memes on Twitter Today
- Crypto Carnage: What to Know About BTC, ETH, ADA, XRP, DOGE Today
On the date of publication, William White 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.
