BlockFi, a top digital asset firm, made a significant distribution error yesterday when it transferred 700 Bitcoin to clients instead of sending GUSD (Gemini Dollar).
In a series of Tweets, BlockFi outlined the mistake sharing that much of the crypto had been returned and they appreciated the understanding of its customers.
To quote BlockFi:
“On May 14, BlockFi made an incorrect transfer in BTC instead of GUSD to clients who participated in our trading promotions. The vast majority of these transactions were quickly identified and reversed immediately.”
On May 14, BlockFi made an incorrect transfer in BTC instead of GUSD to clients who participated in our trading promotions. The vast majority of these transactions were quickly identified and reversed immediately.
— BlockFi (@BlockFi) May 19, 2021
BlockFi said approximately 100 clients were able to access the mistaken deposits. The company stated that its exposure, as of yesterday, was approximately $10 million as they communicated with impacted accounts to get the BTC returned.
BlockFi noted that it holds both US dollars and crypto on its balance sheet and the transferred amount represented a very small loss from reserves. The firm said that client funds were never at risk.
Several clients commented on Twitter with one noting that for 3 hours they became a millionaire after receipt of BTC.
Was a millionaire for 3 hours 🤣🤣🤣🤣🤣🤣🤣🤣 pic.twitter.com/D7Y18bFlK6
— nebrijo (@Drexel92) May 19, 2021
While some individuals in the Twittersphere were critical of the BlockFi error, others lauded the transparency of the mistake and the action the company took to rectify the issue.
It should be noted that other financial services firms occasionally experience similar fat finger errors. There are many stories about banks erroneously transferring funds. In brief, s**t happens.