Advertisement
BlockFi in Trouble after Crediting 700 BTC into Wrong Customer Accounts
Crypto lending platform BlockFi has blundered a campaign they ran in March, offering users bonus payments of 1:1 dollar-backed GUSD (a stablecoin built by cryptocurrency exchange Gemini), mistakenly crediting accounts in Bitcoin instead.
700 BTC Promo Credit
One user posted on Reddit that he had been credited with over 700 BTC (amounting to more than $25 million at the time).
BlockFi has confirmed this in a statement on Reddit.
“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.”
BlockFi Staff Member
Reward For Returning Funds
The company is now desperately trying to reverse the damage of these generous deposits, reportedly even offering rewards ranging from $500 to $1,000 for returning the lost funds and even threatening legal action against users.
This isn’t the first time BlockFi have been in the news, they recently expereinced Downtime And Public Sign-ups Temporarily Disabled.
Author
Caitlin Carey
Caitlin is a crypto evangelist with a deep curiosity and passion for learning and writing about everything to do with cryptocurrency. She has a background as a performing artist and songwriter and is a digital media enthusiast, with a bachelor degree in Multimedia.
