Tzoni Raykov Expresses Concerns Over Revolut’s Deposit Instructions
Tzoni Raykov’s venture into cryptocurrency, initially meant to be a fun experience, took a sour turn when an administrative blunder led to a loss of $1,500. This incident has raised significant concerns about how users are treated within the crypto industry. Raykov, an oil engineer, has been a Revolut customer for several years, primarily utilizing the app for simple transactions like splitting bills with friends using traditional currencies such as pounds or dollars. However, intrigued by the company’s cryptocurrency offerings, he decided to give it a try.
A Frustrating Experience with Cryptocurrency Transfers
What Raykov anticipated to be an easy transfer of cryptocurrency has instead left him frustrated and financially impacted. His ordeal underscores the challenges many face in the crypto realm, where the customer protections commonly found in traditional banking—often enforced by law—are absent. “When you are treated like this, it makes you feel powerless,” Raykov shared with BBC News.
The Transfer Mishap
Despite Bitcoin’s prominence in the crypto market, there exists a wide array of digital currencies, including USDC, which Raykov had already accumulated in another crypto account. His troubles began in February when he attempted to transfer some USDC to his Revolut account. Following Revolut’s advice, he started with a small transfer of 10 coins, worth $10, which successfully reflected in his account. However, when he later attempted to transfer what he believed to be 1,500 USDC, the funds did not appear in his account.
Confusion Over Deposit Instructions
Raykov attributes this issue to Revolut’s ambiguous deposit guidelines. When moving cryptocurrency between accounts, users must select a specific network, akin to choosing a courier service for parcel delivery. Revolut’s instructions indicated that USDC should be sent via a network called Polygon. During his first successful transfer, Raykov chose “Polygon PoS.” However, for the larger transfer, he mistakenly selected “Polygon (bridged),” thinking it would function similarly. This error resulted in his coins being converted into USDC.e, a different type of cryptocurrency, which Revolut does not support.
Revolut’s Response to the Issue
Upon discovering that his account had not been credited, Raykov reached out to Revolut’s support team. Communications revealed that the issue stemmed from the specific Polygon network used, leading to the conversion of his coins. One representative noted that the app currently does not distinguish between standard and bridged options, promising to take his feedback into account for future enhancements. Raykov believes clearer instructions could have prevented this mishap.
Revolut’s Position on the Matter
When questioned about Raykov’s case, Revolut provided a different perspective, asserting that the issue was not due to the wrong network selection. They clarified that the deposit failed because the USDC.e tokens received were unsupported by their system. The firm stated that recovering unsupported assets falls outside their operational capabilities due to the complexities involved in managing various token and chain combinations.
Feeling Abandoned by a Major Financial Player
Raykov feels that the treatment he has received from a reputable company like Revolut is unacceptable, especially since it also manages traditional banking transactions. With around 10 million users in the UK and a provisional banking license, Revolut is well-established. In conventional banking, erroneous transfers of traditional currency are typically reversed, a practice supported by a voluntary code of conduct most UK banks adhere to. Unfortunately, no such protections exist in the cryptocurrency sector.
Raykov’s Determination to Recover His Funds
Despite numerous attempts to resolve the issue, Raykov has been informed that his coins are essentially lost. “They seem to be waiting for me to lose interest and give up. But that’s not going to happen,” he stated, emphasizing that the coins remain within Revolut’s system. His loss, while significant to him, pales in comparison to the broader crypto market, which has seen dramatic fluctuations in value over the past year.
The Broader Cryptocurrency Landscape
The global cryptocurrency market reached a peak value of $3.9 trillion last December before experiencing a decline of $1.1 trillion, according to CoinGecko. As government regulations evolve to support the crypto industry, it continues to face challenges, including high-profile scandals like the collapse of FTX. The firm, once among the largest in the sector, filed for bankruptcy in 2022, with its CEO, Sam Bankman-Fried, receiving a 25-year prison sentence for defrauding customers.
The Need for Improved Regulation
Recently, Bybit, a prominent cryptocurrency exchange, suffered a $1.5 billion loss due to a hack attributed to North Korean operatives. The company had been utilizing Safe, a free digital storage software, for its operations but acknowledged the need to upgrade their security measures. Experts in the field, like Professor Mark Button, assert that the rapid growth of cryptocurrency companies often outpaces their ability to manage financial and security demands.
Ensuring Safe Practices in Cryptocurrency
In Raykov’s situation, clearer regulations might have facilitated a smoother resolution or compensation process when firms receive unsupported coins. Higher industry standards could have also prevented the initial transaction error. Mykhailo Tiutin, the chief technology officer at AMLBot, emphasizes the importance of exercising caution with crypto services, encouraging users to conduct thorough research. He acknowledges that losses can occur due to administrative mistakes, underscoring the notion that the responsibility for both successes and failures ultimately lies with the user.
