What would you do if nearly $1 million unexpectedly landed in your crypto trading account?
While many of us would like to believe we’d promptly report the error to the appropriate authorities, it appears not everyone shares such noble intentions. A man from Mildura has seemingly disappeared after cryptocurrency exchange Rhino Trading (OTCPro) mistakenly credited $995,000 to his trading account instead of the correct amount, $95,000.
Close to $1M Withdrawn in Tether
It took OTCPro a few days to notice the accounting error, and by then, it was too late. Kow Seng Chai, the individual responsible, wasted no time in converting the funds into the USD-pegged stablecoin Tether (USDT) and withdrawing them in maximum installments of USD $100,000 (AUD $152,000) from the platform. Ultimately, Mr. Chai managed to withdraw approximately AUD $956,000, nearly half of which belonged to OTCPro.
Despite OTCPro’s efforts to contact Mr. Chai regarding the overcredited amount, including numerous emails and attempts to reach him by phone, all communication attempts failed. Moreover, when contacted by phone, the individual who answered denied being Mr. Chai. Adding to the concern, Mr. Chai’s account, registered under the name of Lotte Enterprise, may have submitted fraudulent documents to substantiate its business activity.
In a positive turn for OTCPro, a submission to the Victorian Supreme Court led to Judge Justice Michael Osborne freezing Mr. Chai’s assets and preventing him from leaving Australia legally. However, the success of this action in locating Mr. Chai and recovering the lost funds remains uncertain.
Melbourne Man Sentenced for Stealing Millions From Crypto.com
Instances of Australians being entangled in cryptocurrency theft cases seem to be occurring with alarming frequency. A recent incident involved an individual who, just four days prior, confessed to indulging in a lavish spending spree subsequent to Crypto.com erroneously depositing $10 million into his girlfriend’s trading account.
The pair implicated in this scheme made an attempt to abscond from Australia. However, their efforts were thwarted when one of them was apprehended at Tullamarine airport while attempting to board a one-way flight to Malaysia. Subsequently, the other individual was apprehended a week later.
In light of these events, Manivel, one of the perpetrators, received a sentence of 209 days in prison, a term considered already served. Additionally, he is obligated to fulfill 18 months of community service as part of his legal consequences.
The recurrence of such incidents underscores the importance of robust security measures and vigilant oversight within the cryptocurrency industry.
