Crypto.com seeks to recover $76K related to transaction error
The company aims to enforce an arbitration award that would force a customer to return a $50,000 transaction and pay more than $26,000 in other costs.
The case revolves around an incident involving Georgia resident James Deutero McJunkins Jr., a Crypto.com user who allegedly received an erroneous deposit of $50,000 in his Crypto.com account on June 24, 2022.
McJunkins transferred these funds to a bank account on the day of the deposit. Crypto.com asked McJunkins to return the funds several times, and after he failed to do so, initiated an arbitration process. The firm lodged claims, including breach of contract, civil theft under Fla. Stat. § 772.11, unjust enrichment, and conversion.
Crypto.com received an arbitration award at the end of the process. This result required McJunkins to pay $76,391.46 to Crypto.com within 30 days of the award being issued. However, McJunkins failed to meet this obligation, prompting the company to seek confirmation from the court through its latest legal filing.
The filing notes that the arbitration award could be vacated or modified in case of fraud, partiality, misconduct, abuse of power, miscalculation, or other issues in the arbitration process. However, Crypto.com said that these factors are not at play and notes that McJunkins did not respond to or dispute its arbitration award.
The awarded $76,391.46 is a sum total of $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 addressed another large error in 2022
Crypto.com addressed another erroneous transaction less than one year ago in late 2022. The crypto company paid more than $10 million to a user instead of the approximately $100 that it actually owed. The affected users were similarly charged with theft and have been compelled to return most of those funds.
These cases serve as a reminder that acceptance of large incorrect transactions can have legal repercussions, even if those transactions involve crypto.