A faceless man has said he exploited bug on BlockFi cryptocurrency lending platform to accumulate millions of dollars in Ethereum.
The man, by the pseudonym ‘Zombieslayer970’ said he was a millionaire for a day on BlockFi after discovering a bug in BlockFi’s software.
The cryptocurrency holder said on Reddit that he was able to send the same Ether to himself “several times” and accumulate over 10,050.798 ETH, worth $1,445,907 USD through the means on BlockFi.
While sending Ether repeatedly to his BlockFi wallet, he was being credited without Ethereum leaving his wallet.
“I was able to send ether over and over again and blockfi would credit the funds when the transaction confirmed, although the ether never left my original wallet because there was not enough gas to complete the transaction,” Zombieslayer970.
After sending about $1.5 Million worth of Ethereum, he attempted withdrawing a small portion to confirm the vulnerability, but the withdrawal was terminated a few days later.
Zombieslayer970 claimed he conversed with some of BlockFi reps, and got his crypto back, but his account was closed by the crypto lending platform.
The pseudonymous crypto holder said he was banned from using the platform due to what he did.
Afterward, he said he attempted taking a loan against his balance and he was directed to the signup page, indicating that he was banned by the firm.
“I’m not sure if I would have been able to complete the loan, or if I had just left it alone if I would have been able to earn interest on my balance,” Zombieslayer970.
The crypto enthusiast said he was saddened for getting pulled out of the platform after discovering a bug in BlockFi’s software. BlockFi told him that the action was a fraud.
“I should have received a bounty not a ban,” said Zombieslayer970.
Founder and CEO of BlockFi, Zac Prince, told NewsLogical that the issue revolved round a minor bug in BlockFI’s UI.
“It was a minor bug in our UI and less than 20 accounts were affected. Bug was fixed last week and no funds were impacted,” he said.
Prince furthered that users who attempted to withdrawing funds that were not actually deposit without them giving BlockFi a heads up about the loophole got their accounts banned.