Crypto lending platform BlockFi has confirmed in a statement posted to Reddit that it mistakenly deposited large amounts of Bitcoin to user accounts.
The firm said that the blunder is “likely” related to an ongoing promo campaign that started in March. It offers eligible participants a bonus payment delivered “in one lump sum in GUSD,” a 1:1 dollar-backed stablecoin built by cryptocurrency exchange Gemini.
Instead, some users were paid the amounts in Bitcoin (BTC), with one poster on Reddit claiming that they had been credited with over 700 BTC, or more than $25 million at current prices.
In a post on Reddit, BlockFi explained, “On May 17, 2021, fewer than 100 clients were incorrectly credited with cryptocurrency associated with a promotional payout that did not belong to them.”
BlockFi said the company has contacted the users who were credited with excessive amounts in Bitcoin and is now “working with them to rectify the issue.” The firm insists that “client funds a