CoinPayments: Excess XRP withdrawals were not incidents


CoinPayments, the multi-cryptocurrency merchant payment processor and portfolio service provider, partially refunded users who lost their Ripple deposits due to a bug in their application. The bug allowed platform users to withdraw XRP tokens in excess of what they actually owned. The flaw was discovered by a few users, who exploited it to empty the XPP CoinPayments portfolio of 21 million XRP tokens.

The bug was not reported until the company detected it on June 5, 2017, and the account balances were updated based on a number of remaining tokens. The balance readjusted to many portfolios after the accident fell to zero, indicating the severity of the situation. The company explained the situation to interested customers on 9 June 2017 via an email.

According to CoinPayments, his team detected the people / accounts that were responsible for the overdraft and asked them to return excess tokens voluntarily. It is said that the request for restitution of the company has received a mixed response, with few people adjusting and then some who have not done so. While the company continues to strive in cooperation with the law enforcement agencies and lawyers to claim the stolen XRP, it also went on to purchase new tokens from the OTC bank at Ripple Inc. to partially compensate the interested parties.

In his previous email, CoinPayments said that funds are being transferred from corporate liquidity reserves to buy tokens. The e-mail also said that the platform will begin to deliver the tokens just purchased from next week.

True to his words, CoinPayments has started to compensate a part of the losses suffered by all its users. The last email that followed the Ripple deposits received from interested users reports the progress of the company so far. He claims that the stolen funds were not voluntarily returned by the authors, as expected, forcing the company to take the legal route. The company indicates that it is now convinced that most of the withdrawals were not carried out by chance but with malicious intentions and CoinPayments initiated a legal action against them.

"Although contacts were made with many of the suspects, the funds were not returned as hoped, which made it very clear that most withdrawals were not made by chance, but with malicious intentions. 39. indictment of the perpetrators until the full extension of the law.This will constitute a precedent in this territory and will discourage future financial crimes in space ".

So far, the platform has bought 55% of the stolen XRP tokens and has been credited to the user portfolios. The rest of the funds lost will be gradually offset by diverting 50% of the platform's future revenues towards the acquisition of new tokens. However, the whole process may take some time and guess, interested users have to sit and wait patiently.

CoinPayments has so far shown good faith, which has pacified most of the victims. It is likely that users will be willing to wait until they receive the rest of the tokens.

referee: Email CoinPayments | Image: NewsBTC

Revelation:    The author is one of the users of CoinPayments who was affected by the XRP token incident.
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