Cryptocurrency exchange accidentally gave customer $10.5 million instead of a $100 refund

[Theinsanegamer]

LOL that's not how property works. Not even a little bit

It might take longer, but they'll get most of it back, or have the defendant behind bars for a long time (or both).

The only way she can evade this is to go on the run. And I'd love to see how much money it'll take to buy back that peace of mind...

History has spoken otherwise. Legally speaking, crypto is not insured by the FDIC, and this goes both ways. In the case of sending someone ten million in crypto by accident, so far as the leger is concerned that transaction is legitimate. No law was broken here, as crypto is an unregulated security, not a legal tender.

And frankly $1 million will put most lawyers on retainer long enough to drive most pursuers to abandon any lawsuit.

Where oh where do people get crazy ideas like this? Basic civil law covers all items of value, whether or not they are "regulated". If you mistakenly receive anything from a doughnut to a dog-house, you're required to return it. If you're aware of the error and do not do so, you're committing theft.

If you send me a signed check for $1000 instead of $10, and I cash said check, that isn't illegal. I am not under obligation to return that money. It was not stolen, you signed that much money being transfered. It may be scummy, but it's not illegal, and in the digital world that's worth it's weight in gold.

 

[trgz]

I'd opt to pay it back in installments - $100 a month?

 

[Endymio]

If you send me a signed check for $1000 instead of $10, and I cash said check, that isn't illegal... It was not stolen.

I'm sorry, but this isn't even remotely correct. From NC Consumer Affairs.

A simple search of the web can deflate your bubble really fast if you find yourself with unexpected money. Cases abound of people who have received erroneous deposits and then spent some, most or all the money and found themselves facing criminal charges. People did various things with the money, from moving it to other accounts to gain interest, investing it, buying cars, helping relatives with bills, or giving to charity. Criminal charges varied by state, but basically amounted to theft of property lost by mistake and receiving stolen property, even in cases where the money went for good or noble causes. In some cases charges were dropped with orders to repay and in others the courts had no mercy, sentencing the offenders to probation and/or prison time. But it all depended upon the judge..."

If you receive a mistaken amount and fail to notice the error, you're still liable, but only civilly. If you intentionally take advantage of the error, however -- it's theft, and unless the amount is minor, you will be criminally charged.

 

[Hodor]

The solution was simple.

1. After noticing their mistake, sell the crypto immediately!

2. Wait a week or two until the price drops (as the trend is downwards for a long time).

3. Buy the crypto back again. Now you'll have 12.5 millions worth of crypto.

4. Remind them of their mistake and return the 10.5 mil that isn't really yours.

5. Ask for a reward for being such a good soul.

6. Spend the honestly earned 1.5 mil on travel, cars and hookers (not necessarily in that order).

7. Leave the remaining 0.5 mil in the form of crypto, wait until it explodes again, so you can improve the lives of even more hookers.

 

[nismo91]

Finders Keepers?!

what appalls me is that the company needs 7-months to notice that 10million dollars are missing. the transaction was also a refund transaction. that means this lady suddenly woke up with 10 million dollars balance her bank account.

she probably waited before spending it all, but after months seems like nobody came looking for the 10 million. one day they came looking, but instead of the 10 million, they wanted more: interest fees, court fees etc. what a good recipe for a settlement!

 

[Neatfeatguy]

History has spoken otherwise. Legally speaking, crypto is not insured by the FDIC, and this goes both ways. In the case of sending someone ten million in crypto by accident, so far as the leger is concerned that transaction is legitimate. No law was broken here, as crypto is an unregulated security, not a legal tender.

And frankly $1 million will put most lawyers on retainer long enough to drive most pursuers to abandon any lawsuit.
If you send me a signed check for $1000 instead of $10, and I cash said check, that isn't illegal. I am not under obligation to return that money. It was not stolen, you signed that much money being transfered. It may be scummy, but it's not illegal, and in the digital world that's worth it's weight in gold.

Some years ago my step-dad was working for a very large company. The company restructured and his division was cut. He was the lead for the division and they offered him two options:
1) keep him and move him to a new department that he could manage (a department he has no experience with no knowledge how to do)
2) they'd part ways and he'd get severance pay (was in tune of 6 figures).

Since he had no experience in the department they wanted him to manage, he didn't want to fail and get fired or take the job from someone that would have been a better fit, he opted for option 2.

The company paid him the severance pay and they went on their separate ways.

A few months later he received a letter in the mail from the company thanking him for his time and blah, blah, blah and inside was a payment for his severance.....this struck him as odd since he had already been paid his severance pay. He sat on the check for a few months and never heard anything otherwise from the company, so he cashed the check and went on with his life.

A year or so later the company reached out to him asking if he could return the 2nd payment since it was sent out in error due to their system being overhauled and combined into one central system - errors had been made on their end and people (such as my step-dad) had received a second severance payment when they shouldn't have.

My step-dad said he had no ties to the company anymore and he doesn't use them as a reference and said screw it, they sent me more money in error and they can't make me give it back so he kept it. He wasn't on the best of terms with that company since they cut his division (it was basically just to save money and keep stock up), he wasn't going to do them any favors.

 

[m4a4]

History has spoken otherwise. Legally speaking, crypto is not insured by the FDIC, and this goes both ways. In the case of sending someone ten million in crypto by accident, so far as the leger is concerned that transaction is legitimate. No law was broken here, as crypto is an unregulated security, not a legal tender.

And frankly $1 million will put most lawyers on retainer long enough to drive most pursuers to abandon any lawsuit.
If you send me a signed check for $1000 instead of $10, and I cash said check, that isn't illegal. I am not under obligation to return that money. It was not stolen, you signed that much money being transfered. It may be scummy, but it's not illegal, and in the digital world that's worth it's weight in gold.

*Sigh* If you read the article, you'd see the courts already sided with the exchange.

And Endymio already pointed out the legal precedence that you're ignoring.

But go ahead and believe that. If such a scenario happens to you, see how far it gets you. Ignorance isn't a good defense lol

 

[Bullwinkle M]

*Sigh* If you read the article, you'd see the courts already sided with the exchange.

Yes, and I have already overruled the Court

I am Cornholio!

 

[PEnnn]

7 mil US dollars and they stayed where they were?
The bank didn't even notice it for 7 months.

I wonder if it occurred to the lady to go live elsewhere? Maybe a non extradition country with relaxed banking laws. There are a few.

Just take the family n move. Could have just disappeared n likely been fine. But no, you stayed n tried to live a life with money that was never yours. Someone was bound to come looking. If she never thought that then she is complete ...
Lesson to learn, either do not take what's not yours or if you commit a crime DO NOT STAY AROUND N WAIT FOR SOMEONE TO SHOW.

Well, don't forget she was dealing in Crypto, ergo, she wasn't the brightest bulb to begin with!!

 

[PEnnn]

If it took that pathetic company SEVEN months to realize their TEN MILLION $$$ error, they they're really to stupid to live....or to even get the money back!!

That lady should have hired a semi-decent attorney with $100,000 retainer. They would have bled that Crypto septic-tank of a company exponentially more than the money they mishandled!!

 

[WhoCaresAnymore]

He split the funds with the CEO of the crypto company. This is an internal job.

 

[Ravey]

They should cut her a deal, refund the original transaction but allow her to keep the interest.. It's not the customers fault that the exchange made a mistake!

 

[jamesphones]

Omg lol what the hell