Tzoni Raykov lost $1,500 in cryptocurrency due to unclear transfer instructions at Revolut. His attempt to send USDC coins led to their conversion into an unsupported USDC.e. Revolut has stated they cannot recover these funds, sparking concerns about customer protections in the cryptocurrency industry and the need for regulation.
Trading cryptocurrency used to be a bit of light-hearted fun for Tzoni Raykov, who found himself out of pocket after an administrative blunder cost him $1,500. The oil engineer has been a long-time Revolut user, mainly for splitting bills in pounds or dollars with friends. But a foray into the firm’s cryptocurrency services ended in frustration and financial loss, raising doubts about how the industry looks after its customers.
After deciding to transfer USDC coins to his Revolut account, Tzoni’s initial $10 test transaction went smoothly. But when he attempted to send a larger amount, things took a turn for the worse. He claims the instructions for transferring cryptocurrency were vague, leading him to select the wrong network, which caused his funds to convert improperly.
The confusion arose because, when sending cryptocurrency, the choice of transfer network is crucial, much like picking the right courier for parcel delivery. In his first attempt to deposit USDC, Tzoni had used the ‘Polygon PoS’ network successfully, but on the second, he opted for ‘Polygon (bridged),’ thinking it would work fine. Instead, it led to a conversion of his coins into USDC.e, a type that Revolut does not support.
After noticing that his bigger deposit hadn’t hit his account, he reached out to Revolut’s support team. They indicated the conversion issue stemmed from selecting the wrong network, although Revolut later contradicted this. They stated the problem wasn’t the network but rather that the USDC.e coins were unsupported, throwing Tzoni into the frustrating limbo of unrecuperated funds.
Tzoni feels that, given Revolut’s prominence in the financial world, the treatment he’s received is unacceptable. In contrast to traditional banks, which have clear guidelines to handle mistaken transfers, the cryptocurrency sector lacks such protections. Tzoni expressed his determination not to let the firm sidestep responsibility for what he believes should be a resolvable error.
Despite Tzoni’s personal loss, it amounts to just a drop in the ocean of a vast cryptocurrency market that recently peaked at $3.9 trillion. The ecosystem has been notably volatile, with significant declines and regulatory shifts sweeping the landscape. Recent scandals, like the downfall of FTX and the shocking theft from Bybit, underscore the need for more robust regulations in the cryptocurrency industry.
Experts agree that rapid growth in the sector often leaves financial firms scrambling to keep up with compliance and security measures. Prof Mark Button advocates for regulatory frameworks to protect consumers better in future transactions. Meanwhile, Mykhailo Tiutin, CTO at AMLBot, emphasises the importance of careful research by users entering the often risky world of cryptocurrency, remarking that losses can happen to anyone.
