The e-commerce company has canceled a $7 million Bitcoin transaction and refunded its customers who used the Bitcoin wallet to buy an Xbox 360 gaming console, after a customer reported that it was being used to buy unauthorized goods.
The company announced Thursday that it had canceled the transaction because it was believed the transaction was being done by a third party.
Xoom says that the buyer was a “victim of a fraudulent transaction,” and has agreed to refund the money to its customers.
Xoom, which was founded in 2011 by Xoom founder and CEO Chris Anderson, offers an online service for buying and selling digital goods.
The service was launched in 2013 and was the first of its kind to offer a secure, anonymous way to purchase and sell digital goods, which has drawn criticism from online privacy advocates.
The company is also the subject of a recent lawsuit filed by a privacy advocate in California.
“The Xoom team will not be charging any additional fees for the sale of Xoom products,” Xoom said in a statement.
“We understand that some customers may be upset by the cancellation of this transaction.
We appreciate their concern and apologize for any inconvenience this may cause.”