Once again, Crypto.com mistakenly appended additional zeros, a recurring blunder.
Crypto.com achieved a significant victory on Thursday in its arbitration case against a user who, despite receiving an accidental $50,000 from the company, adamantly refused to return the funds. The user in question, James Deutero McJunkins Jr. from Georgia, had registered an account with the Singapore-based crypto exchange in May 2020. However, on June 24, 2022, an inadvertent deposit of $50,000 was made into his account by Crypto.com.
Following the erroneous transfer, McJunkins promptly moved the money to an external bank account on the same day, as stated in a court filing with the Southern District of Florida. Despite Crypto.com’s numerous appeals for the return of the funds, McJunkins remained unresponsive, leading the company to engage legal counsel.
In April, the arbitrator ruled in favor of Crypto.com, determining that not only must McJunkins reimburse the $50,000, but he is also liable for the plaintiff’s legal expenses. The arbitrator’s decision required McJunkins to pay a total amount of $76,391.46. However, McJunkins, once again, declined to comply and failed to address or contest the claim against him, according to the filing.
Given that arbitrators lack the authority to enforce payment by the winning party, the case was subsequently assigned to a judge on Friday, according to the American Arbitration Association.
This incident is not the first time Crypto.com has encountered a substantial accounting error. In August 2022, the exchange inadvertently refunded an Australian woman $6.6 million instead of the owed 100 Australian dollars. However, Crypto.com only discovered the mistake during an end-of-year audit, seven months after the erroneous refund was made.
Before Crypto.com could follow the proper legal procedures to recover the funds, the woman in question reportedly utilized the money to purchase a luxurious multimillion-dollar mansion, complete with amenities such as a home cinema and gym.
As of October 2022, the woman had been apprehended on theft charges and subsequently released on bail pending trial, as reported by the Guardian.