Australian Man Disappears After Receiving $500,000 by Mistake

TL;DR breakdown

Kow Seng Chai disappeared after withdrawing $500,000 received by mistake from Rhino Trading Pty Ltd.
Thevamanogari Manivel spent part of $10.5 million from an employee’s transaction error on real estate, leading to a lawsuit.

Kow Seng Chai, an Australian man living in Mildura, vanished after accidentally receiving $995,000 and withdrawing $500,000 in cryptocurrency from Rhino Trading Pty Ltd. The platform intended to transfer a much smaller amount into his account, but a mistake led to him receiving ten times the intended amount. The trading platform has tried to rectify the error and recover the funds, but the whereabouts of Kow Seng Chai remain a mystery.

The Half-Million Dollar Mistake

This incident began when Chai, through his business Lotte Enterprise Ltd, made a deposit into his trading account with OTCPRO, a platform operated by Rhino Trading Pty Ltd. Chai intended to deposit $99,500 but a critical error occurred while processing this transaction, adding another zero to the figure making it a to sum to $995,000.

Upon realizing this mistake, Rhino attempted to rectify it by contacting Chai but failed, Legal actions were immediately implemented to freeze Chai’s assets. However, Chai had already withdrawn a significant amount in Tether (USDT) of $500,000. They later discovered discrepancies in Chai’s account, including questionable bank statements and conflicting addresses and letters.

Legal battles were fueled when the Victorian Supreme Court issued travel restrictions to Chai, born in Malaysia, from leaving Australia. A step further, the court froze his assets, too. These actions were partly based on Chai’s fraudulent documentation, questioning his business’s dealings.

Sued for $10.5 Million Transaction Error

Chai’s incident is not an isolated occurrence. In 2022, Crypto.com sued an Australian woman, Thevamanogari Manivel, for holding $10.5 million in her account. A transaction error happened when Crypto.com intended to send a $100 refund. This error remained unnoticed for seven months until an audit report highlighted the discrepancy in December. Manivel had already spent part of her lucky fortune on real estate.

This mistake occurred when an employee confused the account number with the payment amount. In an intense court battle, Crypto.com demanded a refund, plus 10% interest and a refund on the legal costs.

However, Shaanan Cohney, a cybersecurity and information systems expert, remarked on the rarity of such cases reaching the courtroom. But, traders and platforms are reminded of the importance of vigilance and the need to safeguard against the unforeseen. These two incidences highlight how errors can lead to fatal financial consequences.