An Australian cryptocurrency exchange is reportedly attempting to retrieve approximately $328,000 from a user following a significant mistake in crediting the account.
According to ABC News, referencing court documents, Rhino Trading, the entity behind the OTCPro exchange, erroneously credited a user with $653,000 (995,000 Australian dollars) in January, instead of the intended $65,300 (99,500 Australian dollars) due to an error.
The exchange alleges that since realising its error on Feb. 4, the user, identified as Kow Seng Chai, has failed to respond to emails requesting the return of the funds.
Court documents also suggest that the user purportedly utilised a portion of the mistakenly sent funds to acquire Tether and made withdrawals from the exchange in increments of $100,000 — the maximum daily limit — ultimately withdrawing approximately $626,700 (956,000 AUD) over a span of 10 days.
Rhino Trading further claims that during a phone call made to the number linked to the user’s account, the individual who answered denied being Chai. Additionally, Chai did not appear in court.
On Feb. 9, the Supreme Court of Victoria froze the individual’s assets and issued an injunction on Feb. 21 to prevent them from leaving the country.
Justice Michael Osborne expressed concerns about the potential disposal of assets and noted discrepancies in bank statements when ordering the freeze on Chai’s assets and imposing travel restrictions.
Meanwhile, the exchange has reported a loss of nearly $322,700, calculated as Chai’s remaining account balance minus the sum of the incorrectly sent funds.
OTCPro’s blunder follows a similar incident involving Crypto.com over two and a half years ago.
In May 2021, Crypto.com mistakenly transferred $6.86 million (10.47 million AUD) to a Melbourne couple, Thevamanogari Manivel and Jatinder Singh, instead of a $100 refund. The couple reportedly believed it was prize money and allegedly spent it on properties, vehicles, and gifts for relatives.
Manivel received an 18-month community corrections order in September 2023, while Singh is awaiting a hearing in a Melbourne court in March.