Crypto Lending Platform BlockFi Accidentally Sends Users $35M In Bitcoin Rewards

A crypto lending platform unintentionally sent users’ accounts large sums of Bitcoin.

What Happened: BlockFi, a Bitcoin and crypto lending service, incorrectly deposited “inaccurate bonus rewards” into its users’ accounts.

According to several reports on Reddit, some users even received as much as 700 bitcoins as a bonus reward, which would have amounted to $35 million at the time.

“My best guess is that I was supposed to get 701 GUSD as part of this April trading promo and they sent me (and others) BTC instead. Only a difference of 50000x, (sic)” said the user on Reddit.

See also: BlockFi Review

BlockFi claims that the issue is related to its March trading promotion. “Our team is working on a fix and the proper amounts will be reflected shortly,” they said in a Twitter announcement.

However, since the announcement, some users have reportedly received emails from BlockFi threatening legal action for unlawfully withdrawing the Bitcoin rewards.

See also: Over $2M Stolen By Elon Musk Impersonators In Crypto Scams, Says FTC

On the issue, a BlockFi spokesperson said, “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 platform, which raised $350 million in Series D funding led by Bain Capital earlier this year, is also reportedly offering $500 worth of GUSD stablecoins in return for returning the inaccurate funds transferred to users in order to compensate them for the funds lost.