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

July 7, 2023 02:45 pm

Andrey_Popov/Shutterstock modified by Blockworks

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.

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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.

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