Crypto Exchange OTCPro Mistakenly Credits User $653,000, Pursues Asset Recovery
Summary:
In a substantial blunder, Rhino Trading's crypto exchange OTCPro accidentally credited a user, Kow Seng Chai, with $653,000 instead of the intended $65,300. The company has been attempting to recover the unintentional deposit since identifying the mistake in February. Chai, however, remains unresponsive and allegedly used a portion of the miscredited funds to purchase Tether (USDT) and withdraw from the platform. The Victoria State Supreme Court has since frozen Chai's assets and prevented him from leaving the country. At this stage, the exchange records a deficit of about $322,700, as the balance left in Chai's account is less than the amount initially overpaid.
In a significant oversight, an Australian cryptocurrency platform, run by Rhino Trading, unintentionally deposited 995,000 Australian dollars (approximately $653,000) into a user's account, rather than the correct amount of 99,500 Australian dollars (around $65,300). ABC News revealed this information, referencing legal documents. Rhino Trading, which operates OTCPro, has been attempting to recover the erroneous transaction, which occurred in January, from the user, Kow Seng Chai, since identifying the mistake on the 4th of February. The accusation states that Chai has not reacted to requests to repay the funds and has allegedly used a portion of the accidental transfer to buy Tether (USDT) and withdraw from the platform, hitting the daily limit of $100,000. Over ten days, he reportedly withdrew close to $626,700 (956,000 Australian dollars). Rhino Trading further claims that a call made to the number associated with the account was not answered by Chai. In court, Chai was absent.
Subsequently, on February 9th, the Victoria State Supreme Court froze Chai's assets and issued an injunction preventing him from exiting Australia on February 21. This decision was made by Justice Michael Osborne due to the "real risk of assets being disposed of" and the suspicion of falsified bank statements. This led to Chai's assets being frozen and him not being allowed to leave the country.
In the aftermath, the exchange records a deficit of around $322,700, the difference between the remaining balance in Chai's account and the amount overpaid. In a similar instance back in May 2021, Crypto.com unintentionally transferred 10.47 million Australian dollars (around $6.86 million) to a Melbourne couple, Thevamanogari Manivel and Jatinder Singh, rather than a $100 refund. The faulty transaction was reportedly the result of a worker incorrectly inputting an account number into an Excel spreadsheet. The couple, under the impression that it was prize money, reportedly bought houses, cars, and presents for family members. Manivel received an 18-month community corrections order in September 2023 and Singh is scheduled to appear in a Melbourne court in March.
Published At
2/26/2024 7:12:14 AM
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