Crypto.com Seeks US Court Upholding of Arbitration Decision for $50K Mistake

Crypto.com Seeks Court Confirmation of Arbitration Award

Cryptocurrency exchange Crypto.com has petitioned a Florida court to confirm a judgment in its favor through arbitration, after mistakenly depositing $50,000 into a user’s account in June 2022. The user, James Deutero McJunkins, transferred the funds into an external bank account, ignoring requests to return the money.

In October 2022, Crypto.com initiated arbitration proceedings, claiming McJunkins had committed civil theft and breach of contract. The arbitrator sided with the company, awarding Crypto.com $76,391.46. This included 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 did not have the authority to force McJunkins to pay the exchange, prompting Crypto.com to file a petition with the Florida court, requesting confirmation of the Arbitrator’s Award and entry of a final judgment in its favor. The petition seeks the amount owed for the Gemini crypto exchange transaction.

In May 2021, Crypto.com was involved in an incident with two users from Australia, which was similar to the current case. Reportedly, the exchange sent more than $6 million to the couple’s account and only realized the mistake in December 2021. The two were accused of theft after they spent most of the money, claiming that they thought it was a reward from the exchange. The authorities in Australia have charged them and the trial is still ongoing.