This post is about an incident which happened with one guy who knows me because I am a member of Indiabits telegram group and he shared his problem with me related to some loss of funds.
X amount of BTC withdrawn from Victim’s Bitbns account to his Olymptrade account. Not sure what was the reason of not accepting this deposit by Olymptrade but they sent it back to one of the INPUTs of the transaction in which BTC was sent from Bitbns. This was dumb and user was not asked about it before assuming that he holds the private key of that address or its his deposit address on Bitbns.
The victim had some other address as his BTC deposit address on Bitbns. The address where Olymptrade sent back BTC was deposit address of some other user on Bitbns.
The user who received X amount of BTC in his Bitbns wallet on May 29, 2019 sold his BTC for INR as informed by Bitbns Customer Support Representative. I have the audio call recording with me but dont want to share it publicly because I respect privacy of Victim and Exchange involved.
I checked several addresses and transactions involved in this case:
- X amount of BTC received by some bitbns address which they informed belong to some other user not victim, was moved and most of that amount is still unspent (0 and 2 are those UTXOs). This was most probably an internal transfer by bitbns done on 2 June 2019.
2. If we trust the Bitbns Customer Support Representative, address used by Olymptrade to send BTC caused the whole issue and it belonged to some Bitbns user as his BTC deposit address.
3. The address mentioned in 2 has received BTC three times since this incident happened: 22 June 2019, 23 June 2019 and 01 July 2019
So the user who used the Victim’s funds as informed by Bitbns Support was active and depositing BTC until July 2019
4. The BTC spent from one of the address shown in the picture in 1 was moved to a bitcoin address. Cant be sure who owns that address, next moved to one Binance hot wallet, eventually reaches Binance cold storage.
Now, let me share some emails exchanged between Victim and exchanges involved:
The call recording in which later Bitbns Support Representative accepts he misunderstood the issue and BTC is lost because it was deposited to account of some other user who has sold it for INR and withdrawn cant be uploaded here. Date of call: 30 August 2019
- Bitbns accepts that they could have handled the case in a better way and gives refund.
- Olymptrade accepts they were dumb to assume an address belongs to user. Give refund.
Or they just play blame game and victim never gets his lost BTC, who is a trader in stock markets from long time but not tech savvy and new to crypto. He can learn things with time but this case really shows how exchanges are sometimes not providing the best support to non-techie users who trade different cryptocurrencies.
Maybe you guys can suggest more solutions, you can comment below or contact me on Twitter: https://twitter.com/prayankgahlot
I don’t consider myself as expert and only trying to help someone based on my knowledge and analysis.