Crypto.com sent user $50K by mistake — now wants $76K in return

This isn’t the first time Crypto.com accidentally added more zeros than they intended

article-image

Andrey_Popov/Shutterstock modified by Blockworks

share

Crypto.com has notched a win on Thursday in its arbitration claim against a user who erroneously received $50,000 from the company and refused to return it.

Georgia resident James Deutero McJunkins Jr. signed up for an account with the Singapore-based crypto exchange in May 2020. Two years later on June 24, 2022, Crypto.com “erroneously deposited” $50,000 into his account. 

According to a court filing with the Southern District of Florida, McJunkins transferred that money to an external bank account the same day.

When Crypto.com’s “numerous” pleas to McJunkins to return the money went unanswered, the company ditched its requests and hired counsel.

In April, the arbitrator sided with Crypto.com, saying the respondent now needs to not only return the $50,000 but also needs to pay for the plaintiff’s legal costs. 

The total amount the arbitrator told McJunkins to pay is $76,391.46, though he has once again declined to do so. In fact, he failed to respond to or dispute the claim against him at all, according to the filing.

A judge was assigned to the case on Friday because arbitrators don’t have the authority to force people to pay the winning party, according to the American Arbitration Association.

This isn’t the first time Crypto.com has made a rather large accounting error. Back in August 2022, the exchange accidentally refunded an Australian woman 10 million Australian dollars ($6.6 million) instead of the 100 AUD it owed her. Crypto.com reportedly didn’t notice the error until seven months later, during an end-of-year audit.

Before Crypto.com could go through the proper legal process and get its money back, the woman reportedly used the money to buy a luxurious multimillion-dollar mansion with perks such as a home cinema and gym.

As of October 2022, the woman in question had been arrested after being accused of theft. She was later released on bail to await trial, according to the Guardian.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

Heron Finance caters to US accredited investors and uses Goldfinch credit markets on the backend

article-image

Bitcoin, up more than 160% year to date, has plenty of steam left in this rally, analysts say

article-image

Nova Labs will hope to grow Helium’s hotspot network to reduce backup coverage costs paid to T-Mobile

article-image

The LinkedIn posting states that the position would “support the Federal Reserve System’s [CBDC] Research and Development program.”

article-image

Both central banks are exploring the impact a CBDC could have on an economy

article-image

Neutron core contributor Dutheil notes this is “a period of consolidation” in the Cosmos ecosystem