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Following a technical glitch in 2020, Canadian cryptocurrency exchange Coinberry sued 50 individuals who together withdrew 120 Bitcoins. According to a court complaint reported by the Financial Post, following a glitch with the Interac e-transfer feature, customers could siphon out the Bitcoin with Canadian dollars that had not been transmitted to their accounts.
Coinberry Mentioned Binance In Lawsuit
The cryptocurrency exchange Binance is named in the lawsuit brought by Coinberry partly because it served as a distribution point for various clients' winnings. WonderFi (WNDR), a cryptocurrency marketplace, bought Coinberry. Over 500 users first took advantage of the issue, and 23 Bitcoins later got refunded at Coinberry's request. The lawsuit states,
"Coinberry contacted all of the said 546 affected registered users by email and demanded return of the misappropriated Bitcoins. Coinberry also immediately contacted Binance."
The missing money raises concerns about the risks taken by businesses when dealing with cryptocurrency and other irreversible assets. The Solana-based DeFi protocol committed a programming error last week, costing it $660,000 in cryptocurrency.
Binance Refused To Comment
Binance declined to comment on the complaint but issued a statement saying that the firm is committed to preventing criminal actors from exploiting the platform, which features a world-renowned investigation team. Given that Binance appears to have cooperated, it is unclear why Coinberry had to resort to a lawsuit. According to the Canadian cryptocurrency exchange, the largest sum a single user stole and did not return was $385,722.31 in April 2022.