BlockFi accidentally sends out bitcoins for promotion.

[Levent]

 

Summary

Crypto trading and lending company BlockFi seems to have made a big commercial mistake and sent out bitcoins instead of GUSD. In one users instance 700 bitcoins (around $30M worth) were deposited to users wallet. Company made a statement on Reddit that they are currently have taken a hit of $10M hit after recovering some portion of the accidental payouts.

Quotes

Quote

 The promotion was intended to be “paid out in one lump sum in GUSD” according to their website. Instead, some accounts were paid the amount denominated in Bitcoin, with some receiving over 700 BTC.

 

A statement by BlockFi, noted that “fewer than 100 clients were incorrectly credited,” and “BlockFi has contacted these clients and is working with them to rectify the issue

 

 

My thoughts

 This is one of the reasons why I am not against regulation of crypto exchanges, if you sent me a $500m worth of bitcoin I wouldn't be compelled to give it back nor there are precedent laws that can coax me into giving it back. Crypto exchanges needs to take their data and systems seriously as much as banks do for their infrastructure.

 

Sources

https://www.forbes.com/sites/nicholasgans/2021/05/19/blockfi-mistakenly-deposits-outsized-bitcoin-payments/

https://www.aljazeera.com/economy/2021/5/19/free-bitcoin-lender-blockfi-mistakenly-sends-some-users-crypto

[Bombastinator]

7 minutes ago, Levent said:

 

Summary

Crypto trading and lending company BlockFi seems to have made a big commercial mistake and sent out bitcoins instead of GUSD. In one users instance 700 bitcoins (around $30M worth) were deposited to users wallet. Company made a statement on Reddit that they are currently have taken a hit of $10M hit after recovering some portion of the accidental payouts.

Quotes

 

My thoughts

 This is one of the reasons why I am not against regulation of crypto exchanges, if you sent me a $500m worth of bitcoin I wouldn't be compelled to give it back nor there are precedent laws that can coax me into giving it back. Crypto exchanges needs to take their data and systems seriously as much as banks do for their infrastructure.

 

Sources (Will fix these AMP links when I am on the PC, mods feels free to fix that if you want.)

https://www-forbes-com.cdn.ampproject.org/v/s/www.forbes.com/sites/nicholasgans/2021/05/19/blockfi-mistakenly-deposits-outsized-bitcoin-payments/amp/?amp_js_v=a6&amp_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16214991717086&csi=1&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From %1%24s&ampshare=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fnicholasgans%2F2021%2F05%2F19%2Fblockfi-mistakenly-deposits-outsized-bitcoin-payments%2F

https://www-aljazeera-com.cdn.ampproject.org/v/s/www.aljazeera.com/amp/economy/2021/5/19/free-bitcoin-lender-blockfi-mistakenly-sends-some-users-crypto?amp_js_v=a6&amp_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16215000271195&csi=1&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From %1%24s&ampshare=https%3A%2F%2Fwww.aljazeera.com%2Feconomy%2F2021%2F5%2F19%2Ffree-bitcoin-lender-blockfi-mistakenly-sends-some-users-crypto

Thats a take I hadn’t thought of.  The one that worries me is the whole “there is nothing new under the sun” phenomena. Unregulated securities markets are abusable. My dad liked to tell the story about when he was a little kid his dad came home from work one day with a wall clock, a coat rack, and half a case of toilet paper.  This was his share of the company.  It went from successful to blown apart in a single afternoon. 

[Moonzy]

It's friggin Christmas

[jaslion]

3 minutes ago, Bombastinator said:

Thats a take I hadn’t thought of.  The one that worries me is the whole “there is nothing new under the sun” phenomena. Unregulated securities markets are abusable. My dad liked to tell the story about when he was a little kid his dad came home from work one day with a wall clock, a coat rack, and half a case of toilet paper.  This was his share of the company.  It went from successful to blown apart in a single afternoon. 

It's pretty much what crypto and the stock market are nowadays. A thing you throw money at and not think about anything behind it. Which just kinda sucks.

[WereCat]

*client stopped responding, client is on Bahamas*

[wanderingfool2]

7 hours ago, Levent said:

 This is one of the reasons why I am not against regulation of crypto exchanges, if you sent me a $500m worth of bitcoin I wouldn't be compelled to give it back nor there are precedent laws that can coax me into giving it back. Crypto exchanges needs to take their data and systems seriously as much as banks do for their infrastructure.

If you were to be given bitcoin accidentally and didn't return it then it would constitute as theft...so yes there are laws that can coax you to giving it back.  Similar to if you were accidentally given a gold bar, when it was intended for your neighbour.  Your possession of it doesn't entitle you to it

[suicidalfranco]

Aaaaaaaaah

Make it rain baby

[Brooksie359]

On 5/20/2021 at 11:29 AM, wanderingfool2 said:

If you were to be given bitcoin accidentally and didn't return it then it would constitute as theft...so yes there are laws that can coax you to giving it back.  Similar to if you were accidentally given a gold bar, when it was intended for your neighbour.  Your possession of it doesn't entitle you to it

Nah I think the no takesies backsies rule applies here. 

[Zodiark1593]

36 minutes ago, Brooksie359 said:

Nah I think the no takesies backsies rule applies here. 

Missed the /s?

 

There is already an existing precedent here, namely with banks, in that an account holder is liable for spending money that was the result of a bank error. 
 

Regulating cryptocurrencies as a security would pretty well cement this precedent. 

[Bratstech]

On 5/20/2021 at 4:10 AM, Moonzy said:

It's friggin Christmas

The best Christmas gift I'll ever receive if I was lucky enough

[Lord Bloobus]

10 minutes ago, Zodiark1593 said:

Missed the /s?

 

There is already an existing precedent here, namely with banks, in that an account holder is liable for spending money that was the result of a bank error. 
 

Regulating cryptocurrencies as a security would pretty well cement this precedent. 

It's basically still in complete grey area because there is zero regulation on it aside from the IRS wanting a piece and tracking it as an investment for taxes but with no official label. I'd bet 99% of people have never paid taxes on any profit they've made from it, and there won't be a significant portion till next year's taxes since it's only a recent offering in mainstream trading apps that actually track your account and provide documents.

[Guest willies leg]

There are honest people and there are dishonest people.

There are good coders and there are shit coders.

 

When shit coders and dishonest people meet, magic happens.