You used your credit card or debit card. You believe you were scammed.
Let’s get your money back!
Case Study: Convincing the Crypto Exchange to Take Responsibility
This case involved the following MyChargeBack services: a cryptocurrency blockchain analysis and a legal demand letter.
G.B. is a resident of the United States who occasionally buys and sells various cryptocurrencies as part of his investment activities. He wanted to make a substantial transfer of 137 Binance coins (BNB) into Ethereum (ETC). Ethereum is one of the world’s top cryptocurrencies after bitcoin. The same is true of Binance coin.
The currency transfer that G.B. was undertaking was a relatively straightforward and uncontroversial one. However, due to a simple misunderstanding, he made a minor procedural error in its initiation. G.B. attempted to make a straight trade instead of what the crypto exchange requires, which is to use a stablecoin intermediary. However, the exchange itself mistakenly allowed it, and then failed to issue a memo code.
The BNB disappeared from G.B.’s wallet, the ETH never appeared, and each attempt to contact the exchange for clarification and correction was met with delay and obfuscation. Finally, G.B. contacted MyChargeBack for assistance.
There was little question that our client deserved his money back. The only questions were how to go about recovering the money, and how difficult would the exchange make the task.
The first step was to perform a forensic investigation into the money trail from the moment the BNB left our client’s wallet until it ended up wherever its final destination might turn out to be. It is a commonly repeated fallacy that since cryptocurrency is encrypted, there is no way to trace it. In fact, even though transactions are anonymized, and tracing them can be complex, our team possesses highly sophisticated tools to accomplish the task.
In the end, we prepared a report for our client detailing the wallet addresses and transaction IDs pertaining to his lost currency. These wallet addresses could be linked to specific persons or entities.
The next step was to have a law firm prepare a professional legal demand letter for delivery to the crypto exchange responsible for the foul-up. The letter alleged failure on the part of the exchange to follow accepted financial institution practices, not to mention their own rules. It was an understandable error for them to accidentally allow a transaction that didn’t follow their preferred procedures. But their apparent inability or unwillingness to attempt to locate and return the lost money was inexcusable.
Sometimes all it takes is to be firmly shown the correct path to take, and a company will take it. Seeing no plausible way to continue to ignore its customer, the exchange accepted its error and returned the entire 137 BNB to his wallet. Interestingly, during the months that the case had dragged on, the dollar value of the asset had more than doubled. In effect, while he initially lost roughly $18,000, the cryptocurrency that was returned to him was worth over $41,000. That’s about as good as victory gets.
At a Glance: MyChargeBack in the USA
Payment made by the crypto exchange
You used your credit card or debit card. You believe you were scammed.
Let’s get your money back!
MyChargeBack UK provides free initial consultations. If MyChargeBack UK is engaged to assist with the processing of a chargeback or other fund recovery service, it will be offered to you on a no-win, no-fee basis, and as part of the claims management service for which the company is authorised and regulated by FCA. Certain QFL services, such as cryptocurrency blockchain analysis and cyber investigative services, fall outside the scope of QFL’s regulated activities and, therefore, will not be subject to regulation by the FCA. The preparation of such reports may be subject to retainers and/or fees. Please note that QFL does not offer any financial or investment advice.
The correspondence address for QFL is 21 Bedford Square, London WC1B 3HH, United Kingdom.
MyChargeBack UK regards phishing and spoofing attempts against our clients very seriously. We advise you to verify that the email you receive from MyChargeBack UK is indeed sent from mychargeback.co.uk. If you are sent any type of communication carrying our name that looks suspicious, please forward a copy to us at [email protected]