Canadian cryptocurrency exchange Coinberry is suing 50 users who collectively withdrew 120 Bitcoins (BTC) valued at $2.32 million U.S. following a software error in 2020.
According to a court filing, the users withdrew Bitcoin that had not yet been transferred to their accounts, exploiting a glitch with the Interac e-transfer function on the Coinberry platform.
The lawsuit also names Binance as it was a venue several of the Coinberry customers used to distribute their Bitcoin.
Initially over 500 customers exploited the security vulnerability, with 23 Bitcoins being returned following a written request made by Coinberry’s legal team.
The lost funds raise further questions about the risks firms take when handling assets such as cryptocurrencies. Last week, a Solana-based DeFi protocol lost $660,000 U.S. worth of cryptocurrencies when it made a programming error.
On August 25, Coinberry's parent company, WonderFi (WNDR), applied to start trading on the Nasdaq exchange in the U.S. It currently trades only on the Toronto Stock Exchange (TSX).
WonderFi’s stock is down 21% this year at $0.50 a share.
