User’s $1,500 Loss Highlights Cryptocurrency Transfer Challenges on Revolut
By George Sandeman, BBC News
In a cautionary tale for cryptocurrency users, Tzoni Raykov, an oil engineer and long-time Revolut customer, expressed his frustration after losing $1,500 worth of cryptocurrency due to a transfer error. What started as a casual venture into the world of digital currencies has turned into an ordeal, drawing attention to the uncertainties that many users face while navigating cryptocurrency services.
A Cautious Approach
Raykov, who has used Revolut primarily for managing his traditional finances—like splitting bills with friends—decided to dip his toes into cryptocurrency after noticing the platform’s promotional offerings. He had previously accumulated USDC, a stablecoin, in a separate crypto account and felt confident based on his prior success with a small transfer of $10 worth of USDC coins to his Revolut account.
However, his troubles began when he attempted to transfer a larger sum, believing that the process would mirror his earlier success. The attempt to send what he thought was 1,500 USDC ended in confusion and, ultimately, loss.
Unclear Instructions Lead to Trouble
Raykov’s issues stemmed from what he described as unclear deposit instructions from Revolut. Cryptocurrency transactions require users to select a specific network for transfers—similar to choosing a courier service—and Raykov claims that the lack of clear differentiation in Revolut’s instructions contributed to his predicament.
When he first transferred his $10 worth of USDC, he successfully used a network identified as "Polygon PoS." In his subsequent attempt to transfer 1,500 USDC, he inadvertently chose "Polygon (bridged)." He later discovered that this selection prompted the conversion of his coins into USDC.e, an unsupported variant that Revolut does not manage.
No Resolution from Customer Support
After realizing his funds were not credited to his Revolut account, Raykov promptly contacted the company’s customer support. He claims the replies indicated that his selection of the wrong network had caused the conversion and subsequent loss of his assets.
Despite being informed that this was a system issue, Revolut has since stated that the responsibility for the loss does not lie with them, citing their inability to support USDC.e transactions. As such, the 1,500 coins remain in limbo, essentially lost to Raykov but readily visible within the Revolut system.
Implications for Cryptocurrency Consumers
Raykov’s experience raises significant questions about the protections available to cryptocurrency users. Unlike traditional financial transactions where regulatory safeguards exist, the cryptocurrency industry lacks structured guidelines to guide consumer recourse in such situations.
In the United Kingdom, a voluntary code was established in 2014 that obligates the majority of banks to revert mistaken transfers of traditional currency. However, according to Raykov, no equivalent exists for cryptocurrencies, leaving users with few options for recovering lost assets.
Industry Standards and Calls for Action
Experts point out the fast-paced growth of the cryptocurrency sector often comes at the expense of operational security and consumer protection. Professor Mark Button, an expert in cybercrime, argues for the necessity of increased regulations to mitigate such issues in the future.
The situation also highlights how consumers must remain vigilant and conduct their own research when engaging with cryptocurrency services. Mykhailo Tiutin, chief technology officer at AMLBot, emphasizes the need for users to be proactive in understanding the risks inherent in cryptocurrency transactions.
The Bigger Picture
While Raykov’s loss is significant to him, it forms just a small fraction of the broader context of an industry that saw its market peak at $3.9 trillion in late 2021 before a considerable downturn. With calls for regulatory reforms growing louder, the events surrounding Raykov’s lost funds serve as a potent reminder of the pitfalls that accompany the exciting yet risky world of cryptocurrency trading.
For now, Raykov remains resolute in his pursuit of recovery. “They are waiting for me to get bored and give up, to accept the money is gone. But I won’t,” he stated. The hope is that his plight may spur discussions that lead to better consumer protections in the rapidly evolving cryptocurrency landscape.
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