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- Refund error: Crypto.com's costly mistake
GM, this is The Crypto Explorer, the only newsletter with headlines so hot our writer can't stand the heat! 🥵
Here’s what we got for you today:
⚖️ Crypto.com sent a user $50k by mistake - now wants $76k in Return
😱 MiCa’s Daily Transaction Cap Threatens Stablecoin Market.
🧱 Around The Block: DeFi protocol Arcadia Finance hacked on Ethereum and Optimism for $455K.
⚖️ Crypto.com sent a User $50k by Mistake - Now Wants $76k in Return
Crypto.com has won an arbitration claim against a user.
Here’s the backstory:
On June 24 2022, Crypto.com mistakenly deposited $50,000 into the account of one of its users named James Deutero McJunkins Jr.
McJunkins then transferred the money to an external bank account on the same day.
Upon realizing the error, Crypto.com made numerous attempts to contact McJunkins and requested the return of the funds.
However, their requests went unanswered, prompting the company to seek legal counsel.
And now, the verdict is in!
An arbitrator ruled in favor of Crypto.com, ordering McJunkins to not only return the $50,000 but also cover the plaintiff's legal costs, amounting to $76,391.46.
But this case is not over yet - McJunkins has again refused to comply and did not contest the claim against him.
Oh, and if you think this was a one-off incident for Crypto.com, then you’re wrong!🙅♀️
In August 2022, the exchange inadvertently refunded an Australian woman $6.6 million instead of the owed 100 AUD.
And that error was only discovered seven months later during an end-of-year audit.
Clearly, someone needs to be doing a better job over there! 🙄
😱 MiCa’s Daily Transaction Cap Threatens Stablecoin Market.
The European Union’s Markets in Crypto-Assets (MiCA) legislation was signed into law on May 31st.
And while the crypto community mostly welcomed it, there seems to be one controversial measure putting a dent in that warm welcome.😟
The law imposes a daily transaction cap of 200 million euros ($219 million) on private stablecoins like Tether (USDT) and Circle's USD Coin (USDC).
Industry experts have expressed concerns that this daily limit could stifle the use of large stablecoins.
It is suggested that regulators should reconsider this aspect of the framework.
Will regulators listen to these concerns and adjust their approach? Only time will tell.🤷
MiCA is expected to be implemented after its publication in the Official Journal of the EU, with regulations and guidelines for crypto firms likely to take effect in 2024.
🧱 Around The Block: DeFi protocol Arcadia Finance hacked on Ethereum and Optimism for $455K.
👺 Hack: DeFi protocol Arcadia Finance hacked on Ethereum and Optimism for $455K.
🤯 Asset Freeze: Circle, Tether freezes over $65M in assets transferred from Multichain.
🤼♀️ Conflict: Cryptocurrency versus the SEC — A fight for fair digital investing.
🆕 New Feature: Revoke adds new feature after users complain of fake approvals scam.
That's all we've got for you today.
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In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be NEW”
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