BlockFi users complain about difficulty in withdrawing funds

Users of the crypto lending platform BlockFi are currently experiencing difficulties in withdrawing their funds following a promotional blunder that resulted in over 700 bitcoin given away by mistake.

Moreover, some clients have also admitted receiving legal threats in an effort by BlockFi to recover the bitcoins it has erroneously credited.

It can be recalled that earlier this week, a costly error happened in the promotion of the lending platform where participants were supposed to be given bonuses in a USD stablecoin but were paid in bitcoins instead, resulting in a possible loss of nearly $30 million.

The incident now puts on the spotlight once again the risks of transactions within centralized exchanges.

BlockFi wants its bitcoins back

After the incident, BlockFi moved to take back what it could but unfortunately, some users have managed to withdraw the bitcoins before the company can get to them.

One user has received an email containing what appeared to be a legal threat. According to Cryptoslate, part of the message read: “Fraudulent activity, including any attempt to withdraw funds that you do not own, did not transfer into your Crypto Interest Account, or did not purchase, is strictly prohibited.”

BlockFi also offered a 500 GUSD incentive along with its request for the return of funds before a specified deadline.

Tall task for BlockFi

In aiming to get back the funds mistakenly credited to its users, BlockFi faces an equally difficult task.

Technically, taking the funds and not returning them can be considered as theft, but some interesting takes on social media argue the opposite, with some saying if a mistake resulting in overpayment constitutes a gift then returning the bitcoin is more “of a moral dilemma as opposed to breaking the law.”

Moreover, immutability is one of the principles of decentralized blockchain which means transactions are irreversible.


Image courtesy of Cointelegraph News/YouTube

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