Someone bought BTC at $6K yesterday and the exchange wants them back

[Bttzed03]

(source)
PDAX is a licensed Philippine crypto exchange and it enforces KYC verification before anyone can trade.
Conversion rate is $1 = Php50

This is still a developing story and the user refuses to share a screenshot of the demand letter and SMS.

What would you do if you're the one in this situation? It's the exchange's fault but they might close the account of the user if refuses to give it back. They know his name and address too.

UPDATE: Here's the demand letter sent by the PDAX customer service

(source)

MORE UPDATES:
1. Chronology of events Per PDAX
2. PDAX Discusses the details on the outage

[AB de Royse777]

Interesting. It would have been nice if we have the BTC amount. Fun to see an exchange is chasing it's customer now :-D

[pungopete468]

I don't think he has no choice but to return it just like what you have said they know his address and name. But I think it's the exchange's fault and not the user the good thing to do is to maybe give the user a reward for returning the Bitcoin but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

[Lorence.xD]

I don't think he has no choice but to return it just like what you have said they know his address and name. But I think it's the exchange's fault and not the user the good thing to do is to maybe give the user a reward for returning the Bitcoin but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

It can be disputed when a legal matter is pushed forward. In my opinion, it was the fault of the exchange and they have to compensate the person, if I were in that situation, I think that I wouldn't return it or at the least before buying that, I would take a screenshot of that buy order, the person was right in every aspect and I think that companies that makes mistakes like this should face the consequences of their mistake.

[maculeth]

how can that happen, not if the user has bought, the exchange is not entitled to any assets that have been purchased by the user?

[yazher]

Wow! so errors like this can happen to the exchanges too? well, looking forward to the result of this kind of action. This rarely happens and on that man's side, he didn't do anything wrong since everything was put clearly without any bug or glitch. I wonder how they will fix this thing and that was a huge blow for the exchange right now.

[KryptoKings]

I don't think he has no choice but to return it just like what you have said they know his address and name. But I think it's the exchange's fault and not the user the good thing to do is to maybe give the user a reward for returning the Bitcoin but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

He didn't cheat anyone. He saw a low sell order and bought it. It was exchange fault and alos seller's mistake.
He should nit be blamed for this.
That said, op must be considerate and return the BTC because it is not fair to take advantage of someone's mistake.

[Garmo]

This is pretty interesting, I've never seen an exchange chase down its own customer before, keep us updated.

I think they are intimidating the customer with these nonsensical messages, no way this stuff is going anywhere in court. The deck is stacked against what little cards the exchange has and the customer did everything according to their own rules. If I were in this guy's shoes, I wouldn't sweat it.

[Rikafip]

I don't think he has no choice but to return it just like what you have said they know his address and name. But I think it's the exchange's fault and not the user the good thing to do is to maybe give the user a reward for returning the Bitcoin but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

Why should he give BTC back just because they know his address and a name?

When you look at their TOS, I don't see on what ground they demand the BTC back, as they say that "Orders, once executed, are final and irreversible." So, if orders are indeed irreversible once executed and if PDAX is just an exchange between the two users, how come they ask money back? Then again, we heard just one side of the story as he didn't share what exactly PDAX told him is the reason for wanting the BTC back so  there might be more than he is telling us.

Anyway, strange behavior from an exchange and if it's true what that guy is saying, I would contact the lawyer and let him deal with them.

[kotajikikox]

in this case Honesty will be the Root of the situation ..

The Man violate nothing instead he is just Lucky to find low selling price and he grab the opportunity , this is nothing in difference like someone send a Bitcoin in others Address in which we can do nothing but to accept our mistake .

But if the man is honest enough and know that Bitcoin price is x10 than how much he bought it ? then he will surrender the funds.

But no one can force him to return them back because he just got lucky in checking the sell order.

[LogitechMouse]

The trader doesn't violate anything with this since it is the fault of either the seller of the system itself if that happens.
The problem with this is that the exchange has KYC and there is a bit of risk in your life if the trader chooses to not return it.

Maybe he can make an agreement with them so at least he can still get some money on it while returning or he will decide not to return. There is nothing wrong with the side of the trader but the worst case scenario here is that his life may be at risk knowing that the exchange has its email and information.

If I will not that position, I will not return it since it is the fault of the seller not the buyer.

[Jawhead999]

I don't think why he need to refuse to give more KYC since PDAX already know his name and his address, which is they know the location of this guy live... it doesn't make sense IMO.

It would be a problem if the user send fake name and fake location, so that's why the exchanges asking more KYC to validate the account.

[franky1]

maybe. just maybe.. the reddit post is just PDAX pretending one of their customers schemed them. by pretending to be a schemed customer. purely to advertise themselves.

you know hint that a exchange can give away free money now and again to get more people to sign up.

maybe its next gen social media advertising. like the last generation stuff that had facebook posts mentioning a celebrity and said 'find out how X got to retire early by gaining 1,500x income in 6 weeks'

[NeuroticFish]

"Bank error in your favor", just it's not Monopoly  
Now, I don't know what can the exchange do, the user didn't technically do anything wrong (maybe he did morally, but not technically). And Bitcoin ownership may get interesting in court.
Also the user can start complaining that a private company is misusing his personal data and it's harassing him, at least (although I don't know how this goes in the Philippines).

Anyhow, it will be fun to see how it's going to develop...

[acroman08]

I don't think he has no choice but to return it just like what you have said they know his address and name. But I think it's the exchange's fault and not the user the good thing to do is to maybe give the user a reward for returning the Bitcoin but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

why? them knowing this person's address and the name is not a reason to return the BTC he legally bought. them threatening to take legal actions(which is BS since there is a rule on their ToS stating that "Orders, once executed, are final and irreversible.") against the person who bought the BTC is just a way of harassing person and hopefully return the BTC without a problem.

but if the buyer becomes greedy well I'm not sure what will be the PDAX's move after that.

just like what in the photo states PDAX will be compelled to take legal action against the guy

@Bttzed03 at the moment the dollar to PHP conversion rate is $1=48php

[KonstantinosM]

And finally the KYC bites someone in the ass!

Let this be a warning. The money that you made legally, they want it back.

Well, it's bitcoin so they can't reverse the transaction themselves. I wish there was more information available. Since the exchange made the mistake they should accept responsibility. It's kind of a gray area, but the demand letter on their part is definitely the wrong way to go. They're not in a position to demand jack sh*t and that's all they should get.

[Chato1977]

I will never return that Bitcoin because it is their mistake and not the buyer , it is a legitimate exchange in which they must suffer from their own Mistakes.

[BrewMaster]

the exchange can only demand the money back and threaten the user if the user had exploited something in their platform intentionally like what a hacker would do and illegally obtained the coins.
but when the exchange itself messed up and sold the coins to that user at a discount because their platform sucks then it is their own fault and can't blame the user.

[serjent05]

Quite an interesting story.  but I wonder how this sell order went through from those buy orders? I somehow have the same view as franky1.   Anyway, applying their Terms and Condition

21. Exchange Services

v. Orders, once executed, are final and irreversible.

There is no way PDAX has the right to go after a finished transaction.  It wasn't the buyer's fault nor he exploited the platform.

[Red Pie]

The exchange may have made a mistake somewhere.  I wonder how this event will turn out.  Here, a way must be found in which neither side will be victimized. If there is no error in the user, the exchange should pay the bitcoins to the user.