Coinberry crypto exchange clients misappropriate 120 BTC due to a software error

The vulnerability in the platform appeared as a result of an update in 2020

09.09.2022 - 13:30

270

2 min

What’s new? Canadian cryptocurrency exchange Coinberry has filed a lawsuit against 50 clients who withdrew 120 BTC (~$2,5 million at the current rate) from the platform. This happened after a bug in the Interac e-transfer software update. Cryptocurrency exchange Binance is also named in the lawsuit because it was used by several clients to transfer 9,48 of the misappropriated BTC, CoinDesk reports, citing court documents.

CoinDesk’s material

What else is known about the lawsuit? On April 13, 2020, the exchange implemented an update that appeared to contain a vulnerability. As a result, Coinberry’s system was receiving notifications of e-transfers in Canadian dollars (CAD), even though no money was actually received.

More than 500 Coinberry clients reportedly took advantage of the vulnerability, with 37 BTC returned after the platform requested it. The exchange has also contacted Binance, the lawsuit says.

Coinberry was founded in 2017 in Toronto. The co-founder and CEO of the exchange is Andrei Poliakov. Coinberry is registered with the Ontario Securities Commission (OSC). In July 2022, crypto exchange WonderFi, whose investors include FTX CEO Sam Bankman-Fried and Canadian entrepreneur Kevin O’Leary, bought Coinberry for $30 million.

In May 2021, the Crypto.com exchange accidentally transferred $10,5 million to a woman from Australia instead of refunding $100. The error was discovered during an audit seven months later. According to the representative of the exchange, the customer’s account number was mistakenly entered in the payment field. With the money received the woman bought a mansion, the court ordered the property to be sold, and the money returned to the exchange.

Author: