BlockFi mistakenly credit users with Bitcoin in promo payout

BlockFi mistakenly credit users with Bitcoin in promo payout

BlockFi, a crypto-lending startup has mistakenly sent some users large sums of Bitcoin as part of their promotion and are now asking them back.

BlockFi sent payouts in Bitcoin rather than sending US dollars to users and while it is working to retrieve the funds, a number of customers have already withdrawn the coins, as per reliable reports. Each of these coins is presently trading at £29,671 after a market crash.

In fact, one customer received around 700 BTC, worth  £21 million, instead of $700. The company stated that the mistake has affected less than 100 users.

Co-founder and CEO, BlockFi, Zac Prince stated that the firm takes loss reserves mainly as part of their accounting policies and this is a small part of the existing loss funds, thus there is no negative impact to equity or continuing of platform operations.

Prince added that the problem that caused the withdrawals was now fixed and incremental measures have been developed to avert any similar problem in the near future.

BTC has lately been under criticism after new rule from Chinese state-funded organizations, which includes the China Banking Association, stated that the digital coins are not “real” and that they shall not and could not be utilized in the form of currency in the market.

Subsequently, Bitcoin saw its price drop by almost 25%, that is around $10,000. In fact, Cardano dropped to 25% and Dogecoin fell more than 30%.

In spite of this crash, Paul Krugman, a Nobel prize-winning economist, stated in a number of tweets that he has quit on predicting the end of BTC, calling it a fashion that could survive forever.

The crash was sort of stemmed by Elon Musk, CEO of Tesla, who tweeted that the firm has diamond hands and was declining to sell its holdings despite of the undetermined market.

Mr. Musk had lately announced that Tesla will not be accepting any payment in cryptocurrency, resulting in crashing of cryptocurrency.

Source credit: https://www.independent.co.uk/life-style/gadgets-and-tech/blockfi-cryptocurrency-bitcoin-accident-b1850899.html