Crypto

CoinPayments Users Find Themselves Short of XRP Tokens

Gautham | June 11, 2017 | 7:30 am
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Crypto

CoinPayments Users Find Themselves Short of XRP Tokens

Gautham | June 11, 2017 | 7:30 am

Users of CoinPayments, a prominent multi-cryptocurrency merchant payments solution and wallet service platform have lost their Ripple (XRP) tokens. Many, who were unaware of the issue had a rude awakening after they received an official communication from the platform reporting them of the loss.

coinpayments

According to the company, the issue was caused by a bug in the platform which allowed few users to withdraw excess XRP tokens from its hot wallet, thereby affecting the total balance. The error, which went undetected for a while was identified on June 5, 2017, following which the wallet balances were updated, which in most cases turned out to be “0 XRP”. However, users who had availed the platform’s Vault facility were not affected.

The platform has attributed the loss of an undisclosed amount of funds to its users who took advantage of the bug over a period of time, without reporting it to the company.

“The people who exploited the glitch were not hackers, but other long-term users of our service who made errors or chose not to report the discovered issue and ended up withdrawing other client’s XRP.”

CoinPayments claims to have collected the information of those users who withdrew excess funds, either deliberately or by mistake and requested them to return the funds immediately. Many of these users seem to have obliged and voluntarily returned the funds, or at least that’s what the company says.

“We are in communication with some already and reclamation process has begun with the help of our lawyers. Early response indicates that honesty appears to be prevailing. Some of the funds have already been returned and through a series of escalating steps we will be making every effort to ensure the XRP is returned to its rightful owners. “

The company has also initiated the process of contacting local and international authorities while seeking legal advice to expedite the process. Even though the company has assured the return of funds to its rightful users, it hasn’t offered any definite timeline for the process yet.

As its customers await further updates, the company has announced that it will be setting aside a quarter of its revenues to compensate the affected.

Ref: CoinPayments Update | Image: NewsBTC
Disclosure: The author is one of the CoinPayments user who was affected by the XRP token incident.
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