Crypto.com seeks US court’s support for upholding arbitration ruling on $50K sent in error.

Cryptocurrency exchange Crypto.com has filed a petition with a court in Florida to confirm a judgment in its favor. The judgment was reached through arbitration after the platform mistakenly transferred $50,000 into a user’s account.

According to the court filing on July 6, Crypto.com made an “erroneous deposit” of $50,000 into James Deutero McJunkins’ account in June 2022. The user did not appear to have earned the funds through trades or other activities. McJunkins immediately transferred the funds to an external bank account beyond Crypto.com’s jurisdiction and ignored repeated requests to return the money.

In October 2022, Crypto.com entered into arbitration to resolve the issue of the missing funds. The company claimed that McJunkins had committed civil theft and breached the contract related to his account. The arbitrator ruled in favor of Crypto.com and awarded them $76,391.46 in April 2023. This amount included the original $50,000 transaction, $1,786.11 in statutory interest, $21,205.35 in attorneys’ fees, and $3,400 in arbitration costs.

Although Crypto.com “won” the arbitration proceedings, the arbitrator did not have the authority to compel McJunkins to pay the exchange. As a result, the company had to seek resolution in federal court. The petition filed on July 6 requested the Florida court to confirm the arbitrator’s award and enter a final judgment in Crypto.com’s favor against McJunkins for the amount owed.

Related: Crypto.com accidentally sends 320k ETH to Gate.io, recovers funds days after

This case is reminiscent of an incident that occurred between Crypto.com and two users based in Australia in May 2021. In that situation, the exchange reportedly transferred over $6 million to the couple’s account and did not discover the error until December 2021. The pair allegedly spent most of the funds, claiming they believed the money was a prize from the exchange. Australian authorities charged the two with theft, and the case is still ongoing.

Magazine: Get your money back: The weird world of crypto litigation

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

Top Crypto Gainers Today: Finding Quick Gains in the Cryptocurrency Market

The current market downturn for major cryptocurrencies has created an opportunity for crypto enthusiasts to find new ...

Policy

Vivek Ramaswamy sees Grayscale's win as clearing a path for Bitcoin innovation.

United States presidential candidate Vivek Ramaswamy expresses enthusiasm over the U.S. court’s ruling between Graysc...

Policy

Coming Soon: Spot Bitcoin ETF, but Hold Your Horses!

The SEC has recently announced an extended deadline until Nov. 8 for comments on the potential spot Bitcoin ETF.

Bitcoin

BTC Slides Below $30K, But Could Pump with Correlations

'Bitcoin traders eagerly watching developments in the US stock and US dollar markets will be excited about the potent...

Market

Bitcoin Volatility: What’s Next for BTC?

The future of Bitcoin is showing great potential as multiple triggers for volatility are predicted, with the current ...

Bitcoin

Bitcoin metric retesting bear-bull junction, possible break?

According to on-chain data, a Bitcoin indicator has been consistently retesting the bear-bull transition point in rec...