Kow Seng Chai, an Australian man, was at the center of a legal drama after disappearing with around $500,000 in crypto assets mistakenly credited to his account by Rhino Trading Pty Ltd, operator of the OTCPro trading platform .
This accident occurred when the trading platform intended to deposit $99,500 into Chai's account, but added a zero by mistake, bringing the amount to $995,000.
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Attempts to Withdraw Funds Failed
Although Rhino Trading has repeatedly tried to contact Chai to refund the funds, their efforts were in vain. This prompted the company to take legal action to freeze Chai's assets and prevent him from leaving Australia.
The error came to light when it emerged that Lotte Enterprise Pty Ltd, Chai's business, had withdrawn a large amount of funds in the form of Tether, a stable cryptocurrency pegged to the US dollar, to reduce the volatility of the crypto asset.
By the time Rhino Trading corrected the error, Chai had already withdrawn nearly $956,000 from his account, leaving the company at a loss of nearly $500,000 after accounting for the remaining balance.
Not an Isolated Case
This incident shows the fragility of cryptocurrency transactions: A simple clerical error can result in substantial financial consequences.
This incident is not isolated in the world of cryptocurrency trading. A similar case occurred more than a year ago when Crypto.com accidentally transferred $10.5 million to a Victorian woman, Thevamanogari Manivel, due to a clerical error.
A Victorian judge expressed significant concerns about the verdict of Jatinder Singh, who pleaded guilty to stealing $6.09 million in a crypto transfer error but denied any intent to steal, causing confusion in court. Although Singh pleaded guilty, the judge questioned the sincerity of his remorse and suggested he may require independent legal advice about the possibility of changing his plea due to the conflicting nature of his statements.
Also Read How to Buy Crypto:
Four Types of Crypto Asset Theft Cases
Crypto asset theft is when a person or group of people illegally accesses and transfers crypto assets from another person's crypto wallet or platform without permission.
Cases of crypto asset theft often occur due to vulnerabilities in system security or negligent actions of the asset owner. The following are several examples of cases of crypto asset theft.
1. Hacker Attacks
Hackers can use various techniques, such as phishing, malware attacks, or exploits of system security weaknesses to gain access to crypto wallets or exchanges and steal users' crypto assets.
2. Losing Private Keys
Private keys are the keys used to access and control crypto assets in a wallet. If someone loses or reveals their private key accidentally, someone else can use it to access and steal those crypto assets.
3. Attacks on Crypto Exchanges
Crypto exchanges are platforms where users trade crypto assets. If the exchange experiences a hacker attack or data leak, users' crypto assets stored on the exchange could become targets for theft.
4. Fraud or Ponzi Scheme
There are also cases where people fall victim to scams or Ponzi schemes that promise high returns but ultimately deprive users of their crypto assets.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH ), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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What is Balancer (BAL)? Pioneer of Decentralized Liquidity Markets
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DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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