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Brazilian Crypto Exchange Sends USD 35 Million For a USD 127 Withdrawal Request

According to the news coming from Brazil, cryptocurrency exchange Bitcambio is amidst one such blunder where the exchange seems to have reportedly sent one of its users a whopping R$ 137 million – equivalent to about $35 million – after the user attempted to withdraw 500 reals, worth roughly $127.

Exchange to reward for users lost time

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

“Earlier last month, I issued some normal draft orders. After a while, Bitcambio called to let me know that they had issued all this value and that they needed me to recognize a document in a notary’s office. I thought it was a coup, “Nunes told Bitcoin’s Portal.

He mistrusted the call and thought it was a hacker who had discovered his information that he was trying to create a way to get his signature. “So I did not even hit the ball. I ignored, ” said Nunes

According to Nunes, Bitcambio called back more often to explain the importance of the procedure. “They said that they had already canceled, but that to complete the process it was necessary to go to the registry office, to recognize the signature and a document that they sent by email.”

On December 04,  the client posted a post on Facebook’s personal page and in the Bitcoin Brazil discussion group – where Bitcambio’s platform vendor, Rodrigo Souza, is an administrator. In the post, Souza acknowledged the exchange error and promised that Nunes’ lost time would be rewarded in some way. “People, the mistake really happened. Kaique will be reimbursed for all the costs he has to go to the notary’s office to solve this shit. The note is already being canceled. ”

On the client’s personal page, he commented: “At Bitcambio everything is done strictly within the law. Mistakes happen, we are not afraid to have their attention. ”

Souza told the local news that a bug occurred in the process of issuing automatic notes, which generated the problem. “We tried the cancellation, but the city hall demanded the letter of agreement. If it were a lower value it would be possible. ”

As Nunes was co-operative, the exchange was able to escape the mistake. If this would have been with a fraudster, the exchange would have had to take a big hit. This also points out that exchanges need better systems and processes so that such errors do not occur again

Will crypto exchanges take more stringent steps in getting their processes and systems in place? 

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