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Canadian crypto exchange sues users for return of bitcoin misused during software glitch – Exchange Bitcoin News
Canadian crypto exchange Coinberry, part of Kevin O’Leary’s Wonderfi, has sued 50 customers to get back the bitcoin they received without paying during a software glitch. “Coinberry contacted all of the aforementioned 546 affected registered users via email and demanded the return of the illegal bitcoins,” the lawsuit details.
Coinberry is suing users to get their bitcoins back
Canadian cryptocurrency exchange Coinberry has reportedly sued its customers who exploited the software bug and obtained bitcoin without paying.
Coinberry, a regulated crypto trading platform, is owned by Vancouver-based Wonderfi Technologies Inc., a company backed by Shark Tank star Kevin O’Leary.
The lawsuit, which was filed in Ontario in June, explains that during a software upgrade in 2020, Coinberry accidentally allowed users to buy BTC with Canadian dollars that were not properly transferred to their accounts.
The exchange described that during the software glitch, customers could initiate an Interac e-transfer, have the amount credited to their Coinberry accounts, buy BTC, transfer the coins out and cancel the original e-transfer. By doing so, they kept their money while getting bitcoin for free.
According to Coinberry, 546 users were able to acquire a total of around 120 bitcoins without paying for them before the software issue was fixed. The lawsuit states:
Coinberry contacted all the aforementioned 546 affected registered users via email and demanded the return of the incorrect bitcoins.
“Coinberry was able to secure the return of approximately 37 of the misused bitcoins from 270 of the affected registered users,” the lawsuit continues.
Some customers transferred their bad bitcoins to Binance, the Canadian exchange further noted, adding, “Coinberry also immediately contacted Binance.” The lawsuit detailed:
Binance acknowledged that it had identified a quantity of the misused BTC and committed to restricting all access to the accounts.
The Canadian crypto trading platform said it has yet to recover two-thirds of the lost BTC from hundreds of customers.
The lawsuit seeks to recover 63 bitcoins from 50 customers, including 9.48 BTC that were transferred to Binance. Coinberry said the list of misused bitcoins provided in the lawsuit does not include people who have taken and not yet returned amounts below $5,000, valued as of May 2020.
The company further noted that the largest amount misused and not returned was $385,722.31 from two accounts under the names Jordan Steifuk and Connor Heffernan, who the Canadian crypto exchange said are actually the same person.
Do you think customers should give Coinberry back the BTC they took for free during the software glitch? Let us know in the comments section below.
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