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Wednesday, July 28, 2021

BlockFi Accidentally Sends Users Free Crypto

Cryptocurrency-lending startup BlockFi Inc. accidentally sent around $10 million worth of Bitcoin to some of its users last May 17 as part of a promotional giveaway.

Zac Prince, co-founder and chief executive officer of BlockFi, said that the company’s transferred crypto is currently decreasing as some coins are being returned by users who erroneously received the mistaken payout. 

Other recipients have already liquidated the received amount before BlockFi could request for it to be returned.

BlockFi continued operations despite the erroneous deposits and is notching record levels of trading volume without considerable interruption.

“BlockFi carries loss reserves as part of its accounting policies and this is a fraction of existing loss reserves — so no negative impact to equity or ongoing platform operations. The issue that caused the withdrawals were fixed and incremental safeguards have been developed to prevent any similar issue in the future,” said Prince.

BlockFi has sent one particular user with 700 Bitcoin which is worth approximately $28 million. The recipient has withdrawn the amount immediately and BlockFi is threatening to pursue legal action to recover the said amount. They’re are also offering up to $500 for the return of the other coins.

BlockFi is currently unavailable for comment regarding the recent developments.

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