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BlockFi Accidentally Distributes Rewards in BTC Instead of Stablecoins

Overview:

  • Crypto lending provider BlockFi has accidentally paid out bonuses to its users in Bitcoin
  • A promo promotion on USD stablecoins was planned, which users should also receive as a reward
  • On Twitter and Reddit, users report high BTC transactions to their wallets and threats from the company

The provider of crypto loans and interest rate products, BlockFi, has happened a serious mishap. Rewards have now been distributed as part of a promo for customers holding USD stablecoins on their BlockFi account during the promotion period. To the delight of customers and the suffering of the company, the promised bonuses were distributed in Bitcoin, and not, as planned, in USD stablecoins. BlockFi itself is actively approaching customers and trying to get the reversal of transfers going, as the company on Twitter notify:

Many users of the platform were able to record large inputs of BTC to their accounts. No wonder, then, that this circumstance quickly makes the rounds on social networks.

Users report BlockFi threats on Twitter and Reddit

Meanwhile, the crypto lending company’s customers are likely to be pleased with the large sums of BTC in their wallets. Even though the Bitcoin price is currently in a decline, the price of currently around 40 thousand US dollars for donated coins is a lot of fun. For BlockFi, on the other hand, the search for a way to be able to carry out the reversal quickly and safely now begins. Like user on Twitter and Reddit reports, the company is not shy about issuing threats.

Accordingly, not every BlockFi customer has noticed the first contact. In a second e-mail, the company makes it clear to its users that you are guilty of a crime if you do not cooperate. Some customers feel threatened and falsely accused by this cover letter and air this circumstance on Reddit.

A look at the BlockFi subreddit shows that most customers are understanding and want to work with the company to find a solution. But there will certainly be black sheep among the unjustifiably gifted. How great the financial damage to the crypto platform will ultimately be will become clear. Not to be neglected, however, is the image damage that BlockFi can get stuck on the current situation.

On the one hand, such a serious mistake seems unprofessional for a company that manages the funds of its customers. Even the direct crisis communication with a sharp tone from the beginning may upset one or the other customer.

In a nutshell: What is BlockFi?

Crypto company BlockFi was founded in 2017 by Flori Marquez and Zac Prince in the United States. The company wants to bring together users from the crypto space with products from the traditional financial business. On the platform, customers can invest their cryptocurrencies and receive additional interest on holding them. Similarly, the company issues crypto loans and operates a trading platform for trading coins.

The platform can be used via the web portal and an associated smartphone app.

Conclusion: a mistake with a long-lasting effect

For BlockFi, the damage is likely to be enormous both internally and externally. If companies that offer crypto loans and interest rate products generally have a rather not so good reputation, it is important to support and protect it with a serious and professional appearance. Missteps of this magnitude, and this means more communication towards the customers, are difficult to iron out again.

Especially the social media used a lot in the crypto scene contribute to the fact that every coming step is made completely transparent.

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