Citibank is in danger of making 550 billion won in one mistake… Remittance return suit lost

Input 2021.02.17 10:18 | Revision 2021.02.17 16:09

The U.S. Citibank is in danger of not being able to get back the money it sent incorrectly to 10 investment advisory companies.

On the 16th (local time), the Federal District Court in New York, USA, ruled against the plaintiff in a lawsuit filed by Citibank to return the money to these companies. It is in accordance with New York State law that the recipient of the money will not have to return the money if they are unaware of the mistake. The court heard on the grounds that the amount sent by Citibank by mistake coincided with the amount that should have been sent to the end, and that the companies that received the remittance did not notice the situation at all until Citibank’s notice.

However, the court accepted the application for a temporary injunction against the disposition of Citibank. As a result, companies are unable to access the money sent by Citibank. Citibank said it would appeal against the ruling on the day.

Citibank previously remitted $900 million (about 1 trillion won) to these companies. It sent only 8 million dollars (about 8.9 billion won) of interest to the principal. In this regard, Citibank filed a lawsuit for return in August of last year, but it has yet to get back 500 million dollars (about 550 billion won) of money.