8 months ago
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An Australian crypto exchange is reportedly making efforts to retrieve nearly $328,000 from a user after mistakenly crediting their account due to a substantial fat-finger error.
The incident involved Rhino Trading, the parent company of the crypto exchange OTCPro, which erroneously transferred $653,000 (995,000 Australian dollars) to a user, far exceeding the intended amount of $65,300 (99,500 Australian dollars) as reported by ABC News, referencing court documents.
The exchange recognized its mistake on Feb. 4, but efforts to contact the user, identified as Kow Seng Chai, for the return of the funds have been fruitless.
Chai has not responded to emails from the exchange regarding this issue. Court filings reveal that the user allegedly exploited the erroneously credited funds to buy Tether and subsequently withdrew around $626,700 (956,000 AUD) from the exchange in several transactions, each capped at the daily withdrawal limit of $100,000.
Further complications arose when Rhino Trading attempted to contact Chai. A phone call to the number associated with his account was answered by an individual who claimed it was not Chai’s number. Additionally, Chai failed to appear in court, prompting further legal action.
In response to the risk of asset disposal, the Supreme Court of the state of Victoria took decisive measures by freezing Chai’s assets on Feb. 9. A subsequent injunction issued on Feb. 21 aimed to prevent Chai from leaving the country. Justice Michael Osborne highlighted the “real risk of assets being disposed of” during his ruling, emphasizing the gravity of the situation.
The exchange has reported a net loss of nearly $322,700, considering the total incorrectly sent funds minus Chai’s remaining account balance.
This incident is reminiscent of a similar mistake by Crypto.com in 2021, where a Melbourne couple inadvertently received 10.5 million Australian dollars ($6.7 million) due to a clerical error.
The couple spent the funds, believing they had won a prize from the exchange. However, during legal proceedings, Crypto.com’s compliance officer clarified that no such competition had been communicated to users.
The Melbourne couple faced legal consequences for their actions, with Thevamanogari Manivel receiving an 18-month community corrections order in September 2023 for recklessly dealing with the proceeds of crime. Jatinder Singh is scheduled for a court hearing in March.
