Free Bitcoin?Borrower BlockFi mistakenly sent cryptocurrency to some users | Bank News

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The startup stated that it used Bitcoin instead of U.S. dollars for the wrong promotional spending and is working to resolve the problem, but some recipients have withdrawn the tokens, and then the company can withdraw its capital.

after Bloomberg

BlockFi Inc., a crypto lending startup, mistakenly sent bitcoin to certain users as part of a promotion, and is working to reverse the situation.

The company used Bitcoin instead of U.S. dollars to pay some customers allegedly incorrect promotional expenses. Although BlockFi is committed to reversing them, many recipients withdrew their coins before the company could return them. Zac Prince, co-founder and CEO of BlockFi, stated that the company’s exposure is about $10 million, but as more users return coins, this amount is declining, and the company’s exposure is about 10 million US dollars.

The prince wrote in the email: “BlockFi uses loss reserves as part of its accounting policy. This is a small part of the existing loss reserves, so it will not have a negative impact on equity or ongoing platform operations.” The problem that led to the withdrawal has been resolved, and progressive safeguards have been developed to prevent any similar problems in the future.”

He added that the wrong deposit did not affect the continued operations of BlockFi, and the company’s transaction volume reached a record level without interruption.

At the same time, screenshots of deposits went on a tour on social media, and at least one Tweet showed a deposit of 700 bitcoins. Despite the sharp decline this week, the trading price of each token on Wednesday was approximately $34,000.

Last week, BlockFi tweeted that certain promotion participants “may see incorrect bonus payments in their transaction records.”

At the same time, the company sent an email to affected users requesting a refund.

BlockFi is perhaps the most well-known non-bank cryptocurrency company. It offers many crypto products, including lending and lending, and it runs a platform for trading cryptocurrencies. It has been the focus of attention during the cancellation of the cryptocurrency market’s rebound in recent months.

The cryptocurrency company’s move reminds people of a $500 million mistake made by Citigroup Inc. last summer when it accidentally sent payments to a group of lenders.

TrueMark Investments CEO Mike Loukas said of BlockFi: “As a standalone device, this is just a glitch.” “We have been denominated in US dollars in the bank. But because this is a volatile asset, it’s wrong. Is magnified.”



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