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Reason Behind Crypto Trader’s Obligation to Return Exchange Refund

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Crypto Trader Faces Investigation For Receiving $585K Excessive Refund From Exchange

In an anomalous instance, a cryptocurrency trader mistakenly received USD 585,000 above the designated refund amount from a digital currency platform. The trader tardily addressed the issue regarding the excess funds.

The miscalculation was eventually noticed by the crypto exchange, but by that time, the trader had already rerouted the additional funds. The platform, called OTCPro, disclosed that the trader had been involved with a transaction totaling close to USD 650,000.

Mandatory Return for Crypto Trader Over Incorrect Payment

An unfolding development from Australia’s Victorian Supreme Court involves the issuance of an order to freeze the assets in the accounts of a crypto trader named Kow Seng Chai.

This information stems from an incident where Chai’s account erroneously received a much higher sum than he had deposited due to a clerical error that added an extra zero to his investment.

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The exchange, upon recognizing its error, discovered that Chai had converted the unwarranted funds into Tether and moved them to different accounts.

Legally, in numerous regions, the act of not reporting and willfully keeping a payment that is not accurate, such as this erroneous refund, is considered a form of theft.

Initially, Chai’s contribution was a sum of $65,000 USD near the end of January. The error of the supplemental zero in the refund was not identified until the beginning of February.

Shaanan Cohney, a Professor at Melbourne University specializing in Cyber Security, provided insights into the challenge of fund recuperation in cases like this.

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His observations suggest that the geographical closeness of Chai to the exchange within Australia increases the likelihood of reclaiming the funds.

“It’s typical that the recipient of mistakenly sent cryptocurrency vanishes. Often, that is where the trail ends.”


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