Brazilian Crypto Exchange Mistakenly Sends User $35 Million on $127 Withdrawal

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Brazilian crypto exchange Bitcambio has reportedly sent one of its users a whopping RS $137 million – equivalent to about $35 million – after the user attempted to withdraw 500 reals, worth roughly $127.

According to local news outlet Portal do Bitcoin, the cryptocurrency exchange started calling the user, Kaique Nunes, about the withdrawal shortly after. Speaking to the news outlet Nunes stated:

“Early last month, I issued some normal withdrawal orders. After a while, Bitcambio called to let me know that they issued all this value and that they needed me to recognize a document in a notary’s office. I thought it was a coup.”

Per the report Nunes initially believed a hacker managed to get a hold of his personal information and was now trying to get his signature, or that he was facing a rogue employee trying to scam users.

Believing it was a scam, Nunes initially ignored the crypto exchange, but the exchange insisted the transaction had been canceled, but that “to complete the process it was necessary [for Nunes] to go to the notary, to recognize a signature and a document that they sent by email “.

Looking to learn more about the case Nunes told a Facebook group related to cryptocurrency discussions in Brazil about the ordeal. One of Bitcambio’s suppliers, Rodrigo Souza, is reportedly an administrator in said group, and replying to Nunes recognized the exchange’s error.

Addressing the user on his personal page, he commented that Bitcambio operates within the law, but that mistakes do happen and they aren’t afraid to draw attention to them. Speaking to the local news outlet, he revealed a bug was behind the large error and that given the size of the transaction, it wasn’t possible to cancel it without a letter of agreement.

Now, both parties are seemingly working towards fixing the problem. Notably, Souza noted Nunes’ time would be rewarded, stating “Kaique will be reimbursed for all the costs he has to go to the notary’s office.”

The ordeal comes at a time in which bitcoin exchanges in Brazil are struggling. As CCN covered the country’s Department of Federal Revenue (RFB) has been looking to snoop on exchanges. In October, exchange Bitcoin Max managed to win a standoff against a bank that was forced to reopen its account to avoid fines.

The bear market has taken its toll. This year Brazil’s largest crypto exchange, Mercado Bitcoin, fired “at least” 20 employees amid restructuring efforts. Huobi, which launched this year in the country, dismissed 6 of its 10 employees.

Featured image from Shutterstock.

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