Citibank accidentally transferred $ 500 million …

A cost of writing errors Citibank the loss of $ 500 million. In one of the biggest banking crashes in history, he passed that number over to Revlon’s lenders and a United States district court judge ruled he wouldn’t be able to get them back.

“This is an unprecedented banking error,” said magistrate Jesse Furman in Manhattan, who ruled that transfers made on August 11, 2020 were “Final and complete transactions, not subject to revocation.”

Furman understood that the beneficiaries are entitled to the money because they did not know it was an accidental transfer and therefore they could keep it.

“To believe that Citibank, one of the most sophisticated financial institutions in the world, had made a mistake that had never happened before, amounting to nearly a billion dollars, would have been almost irrational”, justifies the Justice decision.

Citigroup has said it will appeal the decision. “We believe we are entitled to these funds and will continue to seek full recovery from them.”the company said in a statement.

The initial transaction stipulated by the bank was to send about $ 8 million in interest to lenders at cosmetics company Revlon.. Yet, by mistake, he made nearly 100 times that amount, including $ 175 million to a hedge fund. In total, he sent $ 893 million, almost 100 times more than expected.

According to the bank, it was a human accident, and many lenders have returned the transferred money to you.

However, 10 lenders refused to return transfers, claiming they believed it was a prepayment.

For this reason, Citigroup took legal action in August last year to recover the roughly $ 501 million that was not returned.