Crypto.com Urges US Court to Uphold Arbitration Decision in $50K Mistaken Transaction Case

Cryptocurrency exchange Crypto.com has filed a petition with a Florida court to validate an arbitration ruling in its favor following a $50,000 mistaken deposit made into a user’s account.

According to a court filing dated July 6, Crypto.com admitted to mistakenly depositing $50,000 into James Deutero McJunkins’ account in June 2022, despite no apparent trading activity or legitimate acquisition of the funds by the user. McJunkins swiftly transferred the money to an external bank account beyond the jurisdiction of Crypto.com, ignoring multiple requests to return the funds.

In October 2022, Crypto.com initiated arbitration proceedings regarding the missing funds, alleging civil theft and breach of contract on McJunkins’ part. The arbitrator ruled in favor of Crypto.com in April 2023 and awarded the exchange a total of $76,391.46. This amount encompassed the original $50,000 transaction, $1,786.11 in statutory interest, $21,205.35 in attorneys’ fees, and $3,400 in arbitration costs.

However, the arbitrator seemingly lacked the authority to enforce the payment from McJunkins, compelling Crypto.com to pursue legal recourse in federal court. The July 6 petition requested the Florida court to confirm the arbitrator’s decision and issue a final judgment in favor of Crypto.com, obliging McJunkins to repay the owed amount.

This incident draws parallels to a similar occurrence involving Crypto.com and two users based in Australia in May 2021. During that incident, the exchange reportedly deposited over $6 million into the couple’s account, only discovering the error in December 2021. The couple allegedly spent a significant portion of the funds, asserting that they believed the money to be a prize from the exchange. Australian authorities charged the pair with theft, and the legal proceedings are still ongoing.

As the case unfolds, Crypto.com aims to secure a favorable court judgment in its quest to rectify the mistaken transaction and recover the funds inadvertently deposited into McJunkins’ account.

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