Canadian Crypto Exchange Sues Users For Returning Hijacked Bitcoin Over Software Issue CryptoBlog

Canadian crypto exchange Coinberry, part of Kevin O’Leary’s Wonderfi, has sued 50 customers for returning bitcoin they got without paying during a software glitch. “Coinberry contacted all 546 affected registered users by email and demanded the return of the diverted bitcoins,” the lawsuit details.

Coinberry sues users to recover Bitcoin

Canadian cryptocurrency exchange Coinberry has would have sued its customers who took advantage of its software glitch and got bitcoins without paying.

Coinberry, a regulated crypto trading platform, is owned by Vancouver-based Wonderfi Technologies Inc., a company backed by Shark Tank star Kevin O’Leary.

The lawsuit, filed in Ontario in June, says that during a software upgrade in 2020, Coinberry accidentally let users buy BTC with Canadian dollars that had not been properly transferred to their accounts.

The exchange detailed that during the software issue, customers could initiate an Interac e-Transfer, get the amount credited to their Coinberry accounts, buy BTC, transfer the parts and cancel the original electronic transfer. By doing so, they kept their funds while getting free bitcoins.

According to Coinberry, 546 users were able to acquire a total of around 120 bitcoins without paying for them before the software issue was resolved. The lawsuit states:

Coinberry contacted all 546 affected registered users by email and demanded the return of the hijacked bitcoins.

“Coinberry was able to obtain the return of approximately 37 of the diverted bitcoins from 270 of the affected registered users,” the lawsuit continues.

Some customers transferred their ill-gotten bitcoin to Binance, the Canadian exchange added, adding, “Coinberry also immediately contacted Binance.” The detailed trial:

Binance has admitted to having identified a quantity of the diverted material BTC and has agreed to restrict all access to accounts.

The Canadian crypto-trading platform said it had yet to recover two-thirds of the losses BTC hundreds of customers.

The lawsuit seeks the return of 63 bitcoins to 50 customers, including 9.48 BTC which have been transferred to Binance. Coinberry said its list of hijacked bitcoins provided in the lawsuit does not include people who took and have not yet returned amounts below $5,000, as assessed in May 2020.

The company further noted that the highest amount misappropriated and not returned was $385,722.31 by two accounts under the names of Jordan Steifuk and Connor Heffernan, which the Canadian crypto exchange claims are actually the same nobody.

Keywords in this story

Binance, Coinberry, Bitcoins Stolen By Coinberry, Coinberry Sues Customers, Coinberry Sues Users, Free Bitcoin, Kevin O’Leary, Hijacked Bitcoin, Hijacked BTC, Stolen Bitcoins, Wonderfi, Wonderful

Do you think customers should return Coinberry the BTC that they took for free during the software problem? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

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