This is very serious, what a great loose from the company
do you think it was a mistake or from the operator who is in charge of the transaction and he should be question for such action this has led the company a great damage.
Topic: Millions of Dollars in Bitcoin 'Incorrectly Credited (Read 236 times)
If you think about it, these mistake could have been another kind that will be paid with big fine so I don't think that they have any right to chase the clients because it was their mistake and the incorrect credit was the fine for the company.
That's a bit stupid and incompetent of them to not be able to incorrectly credit those amounts to their clients, I say that they deserve what they got because they were sloppy in their work. Maybe they might be able to get all those money back but I can't guarantee that people will do so especially those with a bad moral compass.
That's problematic for them because I am sure that not everyone is going to return the amount to them, this kind of thing is a once in a lifetime opportunity for many people. Also, threatening legal action will not make things better for them since a lot of people might misinterpret the notion.
That's what I was thinking too, that not everyone is going to return the money especially if they can prevent it from being taken away from them, I think there was a similar case to this one but the person tricked the bank to prove that they don't read their documents and he never was bothered because the court decided that the man was right.
In a similar case, a woman bought a house and was later arrested when Charles Schwab over-credited her account- https://www.marketwatch.com/story/woman-arrested-for-refusing-to-return-1-2-million-she-received-from-charles-schwab-via-accounting-error-11618416297
Legally, does the company have the right to do so? I mean, as long as the increased amounts came to users through the company's mistake, does the law allow to punish users who withdrew excessive amounts?
Withdrawing in excess of your assets in your account is not ethical of course but I am curious to know what the law thinks in this case. This is an interesting legal case. I hope there are some legal experts out there to tell us about this issue from a legal point of view.
Withdrawing in excess of your assets in your account is not ethical of course but I am curious to know what the law thinks in this case. This is an interesting legal case. I hope there are some legal experts out there to tell us about this issue from a legal point of view.
Contract act in most countries (mine is India which is based a lot on British Laws) state that any action that is done by mistake doesn't tantamount to a valid contract. Thus it is revocable and void ab initio - meaning it is not valid right from the beginning. Also, most laws have "doctrine of unjust enrichment" which prevents someone from getting rich by creating loss to another without a valid consideration.
Legally, does the company have the right to do so? I mean, as long as the increased amounts came to users through the company's mistake, does the law allow to punish users who withdrew excessive amounts?
Withdrawing in excess of your assets in your account is not ethical of course but I am curious to know what the law thinks in this case. This is an interesting legal case. I hope there are some legal experts out there to tell us about this issue from a legal point of view.
Withdrawing in excess of your assets in your account is not ethical of course but I am curious to know what the law thinks in this case. This is an interesting legal case. I hope there are some legal experts out there to tell us about this issue from a legal point of view.
That's a bit stupid and incompetent of them to not be able to incorrectly credit those amounts to their clients, I say that they deserve what they got because they were sloppy in their work. Maybe they might be able to get all those money back but I can't guarantee that people will do so especially those with a bad moral compass.
This would really be a costly mistake and as i mentioned earlier on where people wont really be finding out to give back these funds to the platform as this one isnt actually their fault to receive out those funds.For some then they might really be considering on returning due to some legal possible problems that they might might face ahead but for sure majority wouldnt really care at all.
Just mentioning the link i give earlier on where there's some bonus for those who gave it back but no one in their right minds on giving back those hundred of thousands worth of Bitcoin on a merely 500 bucks.
blockfi actually offers $500 if they return the BTC that was distributed to them incorrectly but then this is the beauty of blockchain because when it's sent, there is no way to get it back unless the recipient sends it back.
blockfi claimed they have gotten back 90% according to this interview https://www.youtube.com/watch?v=KvJAEjv47E0 skip to 7:00
and they have also talked to some clients on the phone saying they are not going to give the BTC back
This is interesting as a legal precedent. Wonder if people who hold out get a better offer at some point irrespective of the legal proceedings. If they cannot be extradited back to the US, they'd have a good chance of getting of scot-free, as long as they restrict their travelling.
Sadly, I do not have a BlockFi account. I could have been one of those lucky ones.
Lol, im thinking the same too and the hell that man was instantly rich basing on the screenshot above on getting 700+ btc? Its not actually generous but rather obviously an error into their side.I doubt that they could reverse or make it to get those coins back that was mistakently been credited. This mistake is really the most costly one and do you really believe
that they can make out reversions if users had able to pull it off? Legal actions might something work but i doubt that they can trace out anyone.
"Some users were already able to withdraw the Bitcoin they received. For those who did, BlockFi sent emails threatening legal action if the crypto wasn't returned by a deadline. It also offered a $500 reward for returning it.
Those threatening emails haven't been entirely well received. Some of the users who withdrew the Bitcoin said they didn't realize what had happened."
They might recover some amounts but not totally in overall on what they had lost.
Sadly, I do not have a BlockFi account. I could have been one of those lucky ones.
Lol, im thinking the same too and the hell that man was instantly rich basing on the screenshot above on getting 700+ btc? Its not actually generous but rather obviously an error into their side.I doubt that they could reverse or make it to get those coins back that was mistakently been credited. This mistake is really the most costly one and do you really believe
that they can make out reversions if users had able to pull it off? Legal actions might something work but i doubt that they can trace out anyone.
I do not think the company will win in a situation like these, they can stop the transactions that were not withdrawn, other than that there is no way they are going to get that kind of amount back if the customers already withdrew the coins and threatening with legal actions will not mean anything and it is their million dollar blunder.
I have a different opinion in this case. Laws of most countries, including the US where Blockfi was incorporated, has a 'doctrine of unjust enrichment'. The underlying principle of this doctrine is that a person cannot become richer at the expense of the other (i.e. without any consideration). For example, if you deposit $100 into your neighbor's account by mistake, you can recover the $100 from the neighbor and such a deposit does not result in a valid contract or gift. You can read up more on unjust enrichment here: https://www.law.cornell.edu/wex/unjust_enrichment
Blockfi's case can be analyzed in parts to be better understand the legalities:
- Recoverability as per law: Here in this case, if Blockfi is able to prove that the accountholders had become unjustly richer at the expense of Blockfi (which seems to be the case here), they can move the court for recovery of the amounts. On the basis of doctrine of unjust enrichment, the courts are likely to allow Blockfi to initiate recovery proceedings against accountholders
- Identification of Account holders: Blockfi makes it mandatory for each account holder to provide their KYC documents and hence would have the data of the account holder. Hence, identifying the account holders and tracing them should not be a hurdle (unless the account holder has provided a fake ID or is absconding).
- Actual recovery from account holders: Once the account holders are traced, Blockfi would have to obtain the bitcoins or equivalent fiat currencies or assets from the account holders. However, if the account holder has spent all or most of the money received from Blockfi; in such cases Blockfi may not be able to recover any assets from the account holders and such attempt maybe futile (even if recovery is legally allowed)
- Overseas account holders: The final leg is the case of overseas account holders. In their case, even if Blockfi initiates the cases, the respective nations of the overseas account holders may not extradite or allow enforcement of US law in their soil. In such cases the recovery is virtually impossible.
Therefore, though it is legally allowed for Blockfi to be able to recover the money from the account holders, it will have a lot of practical hurdles to do so.
Hope the above is able to provide more perspective on this issue. Would be happy to have your comments on this. Thank you.
In a promo gone wrong, BlockFi has mistakenly deposited large amounts of Bitcoin to user accounts.
The company is now trying to reverse the transactions, reportedly threatening legal action against users who withdrew excessive amounts."
I do not think the company will win in a situation like these, they can stop the transactions that were not withdrawn, other than that there is no way they are going to get that kind of amount back if the customers already withdrew the coins and threatening with legal actions will not mean anything and it is their million dollar blunder. The company is now trying to reverse the transactions, reportedly threatening legal action against users who withdrew excessive amounts."
What a big reckless mistake by BlockFi. Even though I am sure this must be the money of some fellow customers only but such types of mistakes and that also in the world of cryptocurrencies where each and every transaction would have a trace forever is sheer stupidity. People who have withdrawn might be situated in different corners of the world. How the hell will they manage to file different legal suits in different countries of the world. Moreover, there might be a few countries where there might not even be any legal knowledge on Bitcoin. I think they have made a mistake that could lead them into liquidation because the amounts I see are really too hefty.
https://decrypt.co/71408/millions-of-dollars-in-bitcoin-incorrectly-credited-to-blockfi-customers
"Millions of Dollars in Bitcoin 'Incorrectly Credited' to BlockFi Customers
Crypto lending platform BlockFi is in hot water after crediting clients with Bitcoin by accident in a promo campaign gone wrong.
In brief
In a promo gone wrong, BlockFi has mistakenly deposited large amounts of Bitcoin to user accounts.
The company is now trying to reverse the transactions, reportedly threatening legal action against users who withdrew excessive amounts."
https://www.reddit.com/r/blockfi/comments/ncnxv1/saw_everyone_posting_about_blockfis_generous/
"Millions of Dollars in Bitcoin 'Incorrectly Credited' to BlockFi Customers
Crypto lending platform BlockFi is in hot water after crediting clients with Bitcoin by accident in a promo campaign gone wrong.
In brief
In a promo gone wrong, BlockFi has mistakenly deposited large amounts of Bitcoin to user accounts.
The company is now trying to reverse the transactions, reportedly threatening legal action against users who withdrew excessive amounts."
https://www.reddit.com/r/blockfi/comments/ncnxv1/saw_everyone_posting_about_blockfis_generous/
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