BlockFi accidentally deposited millions of dollars worth of Bitcoins into user accounts as part of their rewards promotion. The firm now threatens legal action on anyone who has not returned funds.
On Monday, BlockFi sent Bitcoin instead of stablecoin to users as part of the rewards promotion. One user reported that he received a payment for 701.4 BTC instead of 701.4 GUSD. The firm is trying to bail out funds by stopping user activity and threatening legal action.
American cryptocurrency lending platform BlockFi made a costly mistake yesterday by sending Bitcoins to several customers instead of stablecoins. Buyers were threatened with legal action if they did not return the assets. The payments were associated with the reward promotion of the lending platform. Users were supposed to buy GUSD, a $ 1 stablecoin, but BTC was sent instead. For example, a screenshot shows that a user received a reward of 701.4 BTC worth about $ 28 million instead of 701.4 GUSD at today’s prices. Others reported that they received similar payments in the subdirectory of Twitter and BlockFi. A BlockFi representative released a statement about the error and confirmed, “Less than 100 customers were accidentally paid for the promotion. They also added that customer funds are safe.
BlockFi contacted those who received the payments by mistake and offered a reward of $ 500-1,000 for the inconvenience. A screenshot shows the firm threatening clients with legal action if they do not return funds.
While BlockFi has made a big mistake, it is unlikely that users will retain assets. False bank deposits have set a precedent for such events in the past.