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Crypto.com Appeals to US Court
Crypto.com, a prominent crypto marketplace, has filed an appeal in a Florida legal institution for an endorsement of an arbitration outcome, following a $50,000 accidental deposit into a customer's trading portfolio.
Error in Account Receivables Result in Legal Dispute
The company’s ledger documented an inadvertent credit of $50,000 to the account of a user named James Deutero McJunkins back in June 2022. The funds, which appeared without any record of corresponding trading operations, were swiftly transferred by McJunkins to an external monetary establishment, making it unreachable for Crypto.com. Even after multiple entreaties for reimbursement, McJunkins remained unresponsive.
Arbitration Victory and Subsequent Court Appeal
Addressing the issue, Crypto.com initiated arbitration for the embezzled funds in October 2022, arguing that McJunkins was guilty of contract violation and civil larceny. The impartial adjudicator agreed with the cryptocurrency platform's rationale and in April 2023, granted it $76,391.46, incorporating the initial transaction of $50,000, $1,786.11 for legislated interest, legal representative charges worth $21,205.35 and an additional $3,400 for arbitration operations.
Unfortunately, despite prevailing in arbitration, it appeared that enforcement of the award was beyond the arbitrator's jurisdiction, prompting Crypto.com to set their sights on the justice system instead. Hence, the company lodged a petition on July 6, appealing the Florida judiciary to validate the arbitration outcome and formally issue a verdict in favor of the company.
Past Indicent with Crypto.com Users
The circumstances of this lawsuit bear a striking resemblance to a previous instance involving Crypto.com and two of its Australian users in May 2021. The duo supposedly received an erroneous transfer of over $6 million into their account with the exchange. Unaware of the mistake, they utilized a large chunk of these funds, assuming it to be a reward from the platform. After discovering the error six months later, the users were charged with theft in Australia, with the case proceedings still underway.
