Canada-based cryptocurrency platform Coinberry has filed a lawsuit against 50 of its users who exploited a software bug to withdraw about 120 BTC (worth about $3 million). The Financial Post reported on Thursday.
Coinberry files lawsuit over loss of 120 BTC
In 2020, Coinberry, a subsidiary of digital asset provider WonderFi, initiated a software upgrade that caused a bug in the Interac e-Transfer feature, one of its payment methods. The bug allowed users to purchase Bitcoin with Canadian dollars they didn’t have. The company kept the information from the public at the time of the incident.
The lawsuit, filed in Brampton, Canada in June, mentioned that the crypto platform was able to fix the bug, but only after 546 users withdrew 120 BTC.
After realizing what happened, the company sent an email to all users involved, asking for the money to be returned. While some users have responded, others have yet to respond.
The statement added that only about 20% of the 546 users have withdrawn over $5000. The top payout, worth $385,722.31 in April, came from a user with two different accounts.
The company charged 50 of its users along with popular crypto exchange Binance, with the latter accused of holding funds transferred by Coinberry users.
Not the first time
This isn’t the first time a crypto platform has lost money due to a software glitch.
Last week, for example, Solana-based derivatives platform OptiFi lost access to $661,000 worth of funds after a failed mainnet upgrade. Due to the unusual delay in upgrading the mainnet, the project team canceled the upgrade, triggering a chain of events that led to the permanent shutdown of the mainnet and the funds stored within it. Efforts to get mainnet back have been in vain.
In June DeFi project optimism lost $16 million in funds to the crypto market maker Wintermute because the market maker provided the wrong wallet address. The funds got stuck at an address inaccessible to either party. Before Wintermute could get hold of the funds, an unknown actor had first obtained the funds and withdrawn them into a separate wallet.
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