Crypto trader faces clawback after receiving over

This article briefly:

•Cryptocurrency trader received an overcharge of $585,000 but failed to return it promptly, causing the value to increase to a total of $650,000.

•The Supreme Court of Victoria issued a freezing order on the accounts of cryptocurrency trader Kow Seng Chai.

•Melbourne University lecturer Shaanan Cohney discusses the challenges of fund recovery in similar cases.

A cryptocurrency trader encountered an unusual situation when he received a refund from a cryptocurrency exchange that exceeded his rights by approximately $585,000. Despite the discrepancy, he failed to return the excess funds promptly.

The trader had already withdrawn the excess amount when the cryptocurrency exchange detected the error. Cryptocurrency exchange OTC Pro revealed that the total amount involved was approximately US$650,000.

Cryptocurrency traders forced to return erroneous refunds

A recent report revealed that the Supreme Court of the Australian state of Victoria has issued a freezing order on the accounts of cryptocurrency trader Kow Seng Chai.

The report clarifies that Chai initially transferred funds to the trading account, but due to an error on the exchange, he received a much larger amount due to an extra zero in the funds he transferred.

However, by the time the exchange realized its mistake, Chai had converted the excess funds into Tether and moved them to an alternative account.

In many jurisdictions, failure to file a return and knowingly accepting an incorrect payment (such as an inaccurate refund amount) constitutes theft.

A zero was accidentally added to the account

Chai initially transferred $65,000 in late January and didn't notice the oversight of the extra zero in the refund until early February.

Shaanan Cohney, a lecturer in cyber security computing and information systems at the University of Melbourne, expressed doubts about the possibility of recovering funds in similar circumstances.

However, he noted that Chai's proximity to the Australian Exchange could make a recovery more feasible.

“Typically, the person who received the cryptocurrency funds disappears and that’s the end of the story.”#加密货币 #资产追回

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