Popular crypto lender, BlockFi recently experienced a glitch in its services and has been depositing an excess amount of Bitcoin as reward to some of its users.
The issue began from a promotional campaign done by the company two months ago. BlockFi offered a bonus to qualified users of the platform who deposited and traded a certain amount. They also proposed a special reward for users who referred their friends to the platform from March 18th to 31st.
All proposed bonuses offered by the platform to its users were supposed to be paid out on the 31st of May. As it stands, however, things have not gone according to plans for the crypto organization.
Based on the experiences of some BlockFi users shared on Reddit, it was revealed that some users got their supposed bonuses prior to the distribution date. Additionally, user rewards shared were in excess, much more than the supposed amount to be distributed.
One user claimed to have received up to 5BTC while some others have even received as much as 700BTC which is worth over $28 million using the current price of Bitcoin.
BlockFi’s Solution to the Problem
To quickly curb the issue, the platform went on to suspend withdrawals on accounts that were affected. While this has put the situation under control in the meantime, some users have already withdrawn the excess crypto assets received before the restrictions were imposed.
One user who withdrew his excess bonus before the restrictions were imposed posted a screenshot online showing that BlockFi sent an email threatening to take legal actions if the user fails to return the asset within a set time frame.
The crypto lending organization also promised to give an extra $500-$1000 worth of coins to users who complied and returned the mistaken bonuses.
Despite the numerous clients they have, the company’s spokesperson affirmed that the number of clients affected by the excess rewards was less than 100. In the meantime, BlockFi which raised $350 million in funding some months back hopes its clients will comply with the appeal and help in recouping the lost funds.