Crypto.com, a cryptocurrency platform, has recently filed legal documents to recover funds following an erroneous transaction. The incident occurred on June 24, 2022, when Georgia resident James Deutero McJunkins Jr., a Crypto.com user, received an incorrect deposit of $50,000 in his Crypto.com account. McJunkins promptly transferred the funds to a bank account. Despite Crypto.com’s multiple requests for the return of the funds, McJunkins failed to comply, leading Crypto.com to initiate an arbitration process. The company lodged claims of breach of contract, civil theft, unjust enrichment, and conversion.
Arbitration Award and Legal Filing
After the arbitration process, Crypto.com was granted an award, requiring McJunkins to pay $76,391.46 within 30 days. However, McJunkins failed to meet this obligation, prompting Crypto.com to seek court confirmation through its recent legal filing. In the filing, Crypto.com acknowledges that the arbitration award could be modified or vacated in the event of fraud, misconduct, abuse of power, or other issues during the arbitration process. However, the company asserts that none of these factors are present and highlights McJunkins’ lack of response or dispute regarding the arbitration award.
The awarded amount of $76,391.46 includes $50,000 in actual damages, $1,786.11 in statutory interest, $21,205.35 in attorneys’ fees, and $3,400 in arbitration costs.
Crypto.com’s Previous Erroneous Transaction
This is not the first time Crypto.com has encountered an erroneous transaction. In late 2022, the cryptocurrency platform mistakenly paid over $10 million to a user instead of the approximately $100 owed. Similarly, affected users were accused of theft and were subsequently required to return the majority of the funds. These incidents serve as a reminder that accepting large incorrect transactions can have legal consequences, even within the realm of cryptocurrency.
Crypto.com has taken legal action to recover funds following an erroneous transaction involving James Deutero McJunkins Jr. The arbitration process resulted in an award of $76,391.46, which McJunkins has failed to pay within the designated timeframe. Crypto.com’s latest legal filing seeks court confirmation of the award. It is important to note that this is not the first time Crypto.com has faced such an issue, emphasizing the potential legal repercussions of accepting large incorrect transactions in the cryptocurrency space.