Cryptocurrency exchange Crypto.com has filed a petition with a Florida court to confirm a judgment obtained through arbitration after mistakenly depositing $50,000 into a user’s account.
The court filing, dated July 6, states that Crypto.com made an “erroneous deposit” into James Deutero McJunkins’ account in June 2022.
The user did not appear to have earned the funds through trades or other activities and promptly transferred the money to an external bank account, beyond the reach of Crypto.com’s authority.
Despite repeated requests for the return of the funds, McJunkins ignored the exchange’s appeals.
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In October 2022, Crypto.com sought arbitration to address the missing funds, accusing McJunkins of civil theft and breach of contract.
The arbitrator ruled in favor of the company and awarded Crypto.com a total of $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.
However, the arbitrator’s ruling did not possess the authority to enforce payment from McJunkins.
Consequently, Crypto.com has turned to the federal court system to seek resolution.
The petition, submitted on July 6, requests the Florida court to “confirm the Arbitrator’s Award and enter a final judgment in its favor and against McJunkins” for the outstanding amount owed.
This incident bears similarities to a previous case involving Crypto.com and two users based in Australia.
In May 2021, the exchange mistakenly transferred over $6 million to the couple’s account, only discovering the error in December of the same year.
The recipients purportedly spent a substantial portion of the funds, believing it to be a prize from the exchange.
The Australian authorities subsequently charged the duo with theft, and the case remains ongoing.
By petitioning the Florida court, Crypto.com aims to obtain a final judgment to secure the repayment of the mistakenly deposited funds.
This legal action showcases the complexities and challenges faced by cryptocurrency exchanges in rectifying errors and holding users accountable for their actions.
