An Australian crypto exchange, Rhino Trading, operating under the platform OTCPro, finds itself embroiled in a legal dispute after mistakenly crediting a user’s account with an exorbitant amount. Here are the key details:
In January, Rhino Trading erroneously credited a user, Kow Seng Chai, with $653,000 instead of the intended $65,300, attributing the mistake to a fat-finger error.
Upon realizing the error on February 4, Rhino Trading attempted to contact Chai to rectify the situation. However, Chai allegedly failed to respond to emails requesting the return of the funds.
Court documents allege that Chai utilized a portion of the mistakenly received funds to purchase Tether (USDT) and withdrew approximately $626,700 over ten days, maximizing the daily withdrawal limit.
Rhino Trading pursued legal action, resulting in the freezing of Chai’s assets by the Supreme Court of Victoria on February 9.
Justice Michael Osborne cited the risk of asset disposal and issued an injunction on February 21, preventing Chai from leaving the country.
Rhino Trading claims a loss of nearly $322,700, calculated as Chai’s remaining account balance minus the mistakenly sent funds.
This incident mirrors a similar error made by Crypto.com in May 2021, where a couple received $6.86 million instead of a $100 refund. The couple purportedly spent the funds on property and gifts, leading to legal consequences.
While one member of the couple involved in the Crypto.com incident was sentenced in September 2023, another is scheduled for a court hearing in March.
The case underscores the importance of accuracy and diligence in financial transactions within the crypto space and highlights the potential legal ramifications for both users and exchanges in the event of errors.
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