On May 17, some customers of cryptocurrency lender BlockFi noticed something unusual: huge Bitcoin deposits in their accounts. These deposits—in one case more than 700 BTC according to a Reddit user (worth $29 million at the time)—were expensive mistakes that BlockFi later owned up to. In a promotional campaign gone wrong, the company had sent rewards denominated in Bitcoin, rather than in GUSD, a $1-pegged stablecoin created by the crypto exchange Gemini.
Because of its error, BlockFi has had to chase after customers who received the extra Bitcoin and has offered rewards of up to $1,000 for the return of its funds. As of May 19, BlockFi’s remaining exposure from the mistake was about 200 BTC, or $7.3 million.
BlockFi wrote in a statement that it accidentally credited “fewer than 100 users” with crypto “associated with a promotional payout.” Though BlockFi says the incident “does not affect any of BlockFi’s ongoing operations,” it raised serious concerns among cus
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