Skip to content
Subscriber Only

Crypto Lender Mistakenly Deposits Bitcoin Into User Accounts

  • Exposure is about $10 million, though coins are being returned
  • Snafu comes as tumbling crypto prices whipsaw investors
Bloomberg business news
Bitcoin Plunges 25%, Draining $500 Billion in Market Value

BlockFi Inc., a crypto-lending startup, mistakenly sent some users Bitcoin as part of a promotion and is working on reversing it.

The company made what it called incorrect promo payouts in Bitcoin instead of U.S. dollars to certain customers. Though BlockFi worked on reversing them, a number of recipients withdrew the coins before the company could backpedal. (It was fewer than 100, the company said.) The firm’s exposure is around $10 million, though that amount is decreasing as more users return the coins, said Zac Prince, co-founder and chief executive officer of BlockFi.