Coinberry Seeking to Recover $3 Million in BTC From 2020 Blunder

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  • Coinberry is taking legal action to recover almost 100 taken by users in a 2020 glitch
  • The exchange has taken Binance to court to collect what hasn’t been sent back
  • A software upgrade allowed users to get ‘free’ bitcoin

Canadian crypto trading platform Coinberry has gone to court seeking the return of $3 million  in bitcoin acquired by users for free after a glitch in 2020. In court documents, the exchange revealed it unintentionally opened a door to free bitcoin two years ago after a software update caused errors in the system. Binance has also found itself entangled in the process despite helping Coinberry recover some funds.

20% of BTC Returned

The glitch in the 2020 software upgrade allowed Canadians to buy bitcoin with funds not yet properly registered in their CAD wallet on the exchange. The bug enabled the users to initiate an e-transfer operation, purchase BTC, and later cancel the e-transfer operation, meaning that they still held the fiat amount used to purchase Bitcoin.

Coinberry disclosed that more than 500 users exploited the bug to purchase roughly 120 worth some $3 million, with less than 25 being returned when asked by the platform.

Coinberry Sues Binance

Coinberry also engaged Binance in the reclamation effort, seeing as some of the free coins landed on the exchange. Although Binance acknowledged seeing some of those coins and blocked some wallets, Coinberry has still chosen to sue the exchange for the remainder. Binance hasn’t commented on the details of the lawsuit but has reaffirmed its commitment to keep malicious actors out of the platform.

Coinberry’s issues are not the first such to arise, with BlockFi and Crypto.Com experiencing similar mistakes in the past.