Coinberry filed lawsuit to reclaim bitcoin lost during 2020 software glitch: Financial Post

Quick Take

  • Canadian cryptocurrency marketplace Coinberry claims it lost $3 million in bitcoin due to a software glitch in 2020, according to the Financial Post.
  • Users were reportedly able to purchase bitcoin with Canadian dollars that were yet not in their accounts.
  • The lawsuit also names Binance, the exchange to which some of the users transferred their funds.

Canadian cryptocurrency marketplace Coinberry claims it lost $3 million in bitcoin due to a software glitch and is seeking to reclaim the money back from customers, according to a report in the Financial Post on Thursday.

The Financial Post says the WonderFi-owned company filed a lawsuit in June that targets 50 customers, along with crypto exchange Binance due to the fact some people transferred the funds to that platform. It wasn't clear from the report if the claim is valued in US dollars or Canadian dollars. 

The complaint stems from 2020 when Chinaberry underwent a software upgrade that allowed users to purchase bitcoin with Canadian dollars that were not yet in their accounts.

Users were able to initiate electronic transfers, credit their Coinberry accounts, buy bitcoin and transfer the funds out before canceling the original transfer and thereby obtaining free bitcoin.

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Coinberry is not the only platform to lose money due to software glitches and errors. Coinbase was also faced with a similar issue earlier this month in Georgia, where traders were able to take advantage of a misplaced decimal point in trading pairs using the Georgian currency.

Coinberry didn't immediately respond to a request for comment from The Block. The Post said Coinberry declined to comment through WonderFi.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Callan Quinn is an NFT, gaming and metaverse reporter. She started her career working for the expat magazine City Weekend in Guangzhou, China. She also has worked as a business journalist in the UK, Somaliland and the republic of Georgia. Before joining The Block, she was a freelance journalist covering the Chinese tech industry. She speaks Mandarin, French and German. Get in touch via Twitter @quinnishvili or email [email protected].