Crypto Exchange Loses Hundreds of Thousands Due to Typing Error
In a recent report from ABC News Australia, it was revealed that an Australian businessman has disappeared after receiving an accidental deposit from a crypto trading platform. The incident occurred when the businessman, Kow Seng Chai, deposited AU$99,500 into the Rhino Trading Pty Ltd platform. However, due to a typing error by the exchange, an extra zero was added to the deposit, resulting in AU$995,000 being credited to Chai’s account.
The Accidental Deposit and Conversion
On January 25, Chai made a deposit of AU$99,500 to the Rhino Trading platform through his company’s account. However, the exchange accidentally credited him with AU$995,000 instead. This brought his account balance to approximately AU$1.36 million.
By February 4, Chai had already converted the funds to USDT (Tether) and withdrew about AU$956,000. The exchange realized its mistake and suffered losses of around AU$492,000 once the remaining recovered balance was subtracted from the mistakenly credited sum.
Attempts to Contact Chai
Once Rhino Trading discovered the error, they tried to contact Chai through the provided phone number and email address. While Chai did respond to their email request asking for the return of the funds, things took an unexpected turn when they called the linked phone number.
The person who answered denied being Kow Seng Chai and stated that the number did not belong to him. As a result, Rhino Trading presented a freezing order petition to the Victorian Supreme Court on February 9. The court issued an injunction on February 21, preventing Chai from leaving Australia.
Troubling Findings and Asset Disposal Risk
Further investigation into Chai’s companies revealed some troubling findings. It was discovered that Chai had previously provided fraudulent bank statements as evidence of his company’s business activity.
According to OTCPro’s director, Qi Tang, Lotte Enterprises had a standard trading pattern. They would deposit funds in Australian dollars almost daily, purchase Tether, and withdraw the funds to a private wallet. Since December 2023, the account had received deposits totaling almost AU$2 million.
However, when Rhino Trading conducted a search of the private wallet on February 4, they found only AU$149.33 in assets. This led Judge Michael Osborne to conclude that there was a “real risk of assets being disposed of,” which influenced the court’s decision to issue the freezing order and injunction.
The Disappearance of Chai
As of now, Kow Seng Chai remains at large, and there is no information available regarding his whereabouts or the missing funds.
Hot Take: The Case of the Vanishing Businessman
In a surprising turn of events, an Australian businessman has seemingly disappeared after receiving an accidental deposit from a crypto trading platform. The typing error by the exchange resulted in hundreds of thousands of dollars being credited to the businessman’s account. Despite attempts to contact him, he has vanished, leaving the exchange with significant losses.
This case highlights the risks and challenges faced by crypto exchanges and traders. It serves as a reminder to double-check all transactions and ensure accuracy to avoid costly mistakes. Additionally, it raises questions about the security and accountability of crypto platforms.
As a crypto enthusiast, it is crucial for you to stay informed about such incidents and take necessary precautions to protect your assets. Always be vigilant when conducting transactions and be wary of potential risks in the crypto space.
Bitro Conwell stands as an intellectual architect, weaving together the roles of crypto analyst, meticulous researcher, and editorial virtuoso with finesse. Amidst the digital intricacies of cryptocurrencies, Bitro’s insights resonate harmoniously with seekers of all stripes, showcasing a profound understanding. His ability to untangle the most complex threads within the crypto landscape seamlessly pairs his their editorial finesse, transforming intricacy into an artful tapestry of comprehension.