The company went to court to get the money back, as the client did not contact them

OTCPro exchange mistakenly sends $653 000 to a user

26.02.2024 - 09:40


2 min

What’s new? Australian crypto exchange OTCPro mistakenly sent its user $653 000 instead of $65 300 and is now seeking a refund. The company discovered the error on February 4 and has since tried to contact the customer, named Kow Seng Chai. However, the customer has not responded to emails or calls and failed to appear in court after OTCPro’s operator, Rhino Trading, sued him.

Cointelegraph’s material

What else is known? Court documents allege that the customer used some of the erroneously sent funds to buy USDT stablecoins from issuer Tether and withdraw funds from the exchange in batches of $100 000, which is the maximum daily limit. Seng Chai thus withdrew about $626 700 within 10 days.

Rhino Trading also called the number linked to the customer’s account, but the person who answered stated that the number belonged to another person.

The Supreme Court of the state of Victoria froze the man’s assets on February 9, and on February 21 issued an order barring him from leaving the country.

Previously, crypto exchange also twice mistakenly sent large sums to its Australian customers, with the incidents occurring in May 2021. One customer received $10,5 million from the exchange and bought real estate with the funds, a court later ordered the sale of the property to recover the funds.

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The couple, Thevamanogari Manivel and Jatinder Singh, then received $6,86 million in lieu of a $100 refund and spent the funds on real estate, cars, and gifts for family members. In court, they said they had considered the receipt of funds as remuneration from the exchange. Singh was released on bail and will appear in court in March, while his wife received 18 months of community service.

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