Lost coins due to KRAKEN's error. KRAKEN offered 1/10th in fee credits

[LostInChain]

Hi,

In the past I was actively trading at KRAKEN - some months with 7-figure volumes, and I'm aware of how to use their site. 

TLDR: Due typo on KRAKEN's site deposited to the wrong chain. (PHA-Phala <> PHA-Khala)

KRAKEN admitted the error, explained

"We are very sorry and understand this situation far from ideal."

Offered 1/10th of the (dollar) amount as compensation in... fee credits (KFEE)

And for the coins...

"Our developers will attempt to recover these funds but due to the complexity of our infrastructure and the security measures we have in place, this can take several months."

Why this topic: As an alert

People could lose coins due to KRAKEN's error and with no-fault from the client's side to get screwed.

It's not about the ~1000 USD in 'lost' coins; I already wrote them off from my balances.

But a principle matter. Regaining client trust. After the FTX/SBF fiasco, this is the most valuable coin.

Imagine if the transfer was for 10K or 100K. Or that 1K worth of coins is fatal for me. There are a lot of people and situations where 1K is critical.

At the same time, Coinbase are making tools like:
"Coinbase announces new asset recovery tool for ERC-20 tokens"
https://www.coinbase.com/blog/coinbase-announces-new-asset-recovery-tool-for-erc-20-tokens

Screenshots to the KRAKEN PRO & KRAKEN Site texts:
https://imgur.com/a/0vupUlV

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What KRAKEN did:
Remember: the client has no-fault in this case

1. Fixed the typo

2. Offered 1/10th of the USD equivalent in fee credits

3. 'I'm continuing to chase up your case' for over a month already.

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How should KRAKEN reacts IMO:

1. Fix the typo

2. Compensate the client, as the client has no-fault in this case; With the same amount of coins or the USD equivalent at the transfer time.

3. Internally resolve/recover the coins with their:
"Our developers will attempt to recover these funds but due to the complexity of our infrastructure and the security measures we have in place, this can take several months."

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I will update my KRAKEN support ticket with a link to this topic - if KRAKEN wants to add anything.







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Longer version:

What happened (screenshots linked): 

1) I wanted to deposit Phala At KRAKEN and because Phala could be transferred over multiple chains (PHA-Phala, PHA-Khala, PHA-Ethereum/ERC20)

Following KRAKEN's instructions from their PRO KRAKEN platform:

"You can only deposit PHA to this address on the Phala Network. Deposits of other tokens or on other networks will be lost."

> deposited PHA-Phala

2) But after some time, I noticed that the deposit it still not credited.

3) Went to Kraken's website to check what is going on and found this on Phala depositing page:

"Only deposit PHA on the KHALA network. Deposits on any other tokens will be lost."

E.g. somebody from Kraken's team made a typo while configuring the KRAKEN PRO (Phala <> Khala). It happens; we are all humans. But what is wrong is KRAKEN's reaction after it.

Screenshots to the KRAKEN PRO & KRAKEN Site texts:
https://imgur.com/a/0vupUlV

[Potato Chips]

Since you were misled, I also think you should be compensated ASAP. It could really take a long ass time for them to recover your funds, let's take this one for instance which took more than a year!

Good job on taking your case publicly. I think with the community's backing, you could change kraken's mind. Have you tried posting in their subreddit (https://www.reddit.com/r/KrakenSupport/)?

[malcovi2]

post it on their other social media accounts or sue them.

[LostInChain]

post it on their other social media accounts or sue them.

Since you were misled, I also think you should be compensated ASAP. It could really take a long ass time for them to recover your funds, let's take this one for instance which took more than a year!

Good job on taking your case publicly. I think with the community's backing, you could change kraken's mind. Have you tried posting in their subreddit (https://www.reddit.com/r/KrakenSupport/)?

Thank you for the support!

Posting on other socials is a good idea - I may post it on Reddit later today.

Suing over 1K is pointless. I prefer to alert people and move on.

[holydarkness]

I don't think they have an account here on this forum so they can be informed about this issue and hopefully expedite your case, do they? And can you provide screenshot of the said statements made by kraken's admin?

Given the frequency of this mixed up chains is quite a lot, Kraken should probably start considering to have some pool to reimburse the fund immediately with what they have from the reserved pool and whem they fixed these mix up --months later-- the fund they recovered would be placed back to the pool. It's almost ridiculous how their member has to suffer a lot of opportunity-lost from the price fluctuations while they tried to fix the problem that they've admitted as their mistake.

[khaled0111]

You send the tokens to the right address and on the right chain as per their instructions. Offering you 1/10th of the amount, sitting on their wallet, as a recompensation for their own mistake (typo) is plain robbery, imo.
You are not responsible for the complexity of their infrastructure and security measures. It's not supposed to be your problem.
Other than crediting the full amount to your account, immediately, they should also offer you a reward for notifying them about this typo. Just my 2 cents.

[LostInChain]

It's up to them

I updated my ticket with a link to this topic.

I don't have a chat with Kraken's admin. Kraken is a fairly big exchange. I have communicated with their support.

You send the tokens to the right address and on the right chain as per their instructions. Offering you 1/10th of the amount, sitting on their wallet, as a recompensation for their own mistake (typo) is plain robbery, imo.
You are not responsible for the complexity of their infrastructure and security measures. It's not supposed to be your problem.
Other than crediting the full amount to your account, immediately, they should also offer you a reward for notifying them about this typo. Just my 2 cents.

I cannot say it better!

I even wrote them - I'm not willing to pay for somebody else mistake.

I wouldn't ever bother them if it was due to my mistake. I would accept it and move on.

[LostInChain]

Be cautious with Kraken.

They are ignoring my messages for more than 10 days about under what jurisdiction my account is - to know where to file an official complaint.

Before this situation, my opinion of Kraken was that they are one of the best exchanges - as behaviour, reputation, etc.

Now... wouldn't spend a dime there. Seems I'm not the only one who thinks like that as Kraken's volumes on most markets are blah.

[TryNinja]

It’s a long shot, but maybe try contacting (spamming a bit) the CEO through his twitter account? He always striked me as an authentic bitcoiner that actually cares about what we (crypto) are offering to the world: https://twitter.com/jespow

[dansus021]

Twitter and Telegram or discord group are always noticeable by their team I know maybe 1000$ is not much for you, but it is still worth taking seriously.

But you did a good job posted here and I think you also need to take post on your twitter add and screenshot will make more legit

[LostInChain]

Three (more) months later, Kraken are ghosting even the support ticket.

Seems this is what you could expect when they are taking 'great care to protect the assets of our clients'.

I used to have a 7-fig monthly volume there; now I have 0 confidence in Kraken.

[Bitcoin_Arena]

Seen such case about assets that have been wrongly sent to Kraken before and the common thing is that they always told the victims that they won't be able to recover the coin which is pretty annoying give the fact that they have the private key.

One thing I will tell you is that, brace yourself. This might take months or even years, or until you give up. Very sad.

[acroman08]

Three (more) months later, Kraken are ghosting even the support ticket.

Seems this is what you could expect when they are taking 'great care to protect the assets of our clients'.

I used to have a 7-fig monthly volume there; now I have 0 confidence in Kraken.

just curious, have you thought of taking legal action(I'm just asking because I am not sure if you can or can't)? I mean, I think you have a case against them. this error is a huge liability on their side and could affect many of their clients. judging from their initial response to you and your current update it looks like they aren't really taking this seriously.

[LostInChain]

Seen such case about assets that have been wrongly sent to Kraken before and the common thing is that they always told the victims that they won't be able to recover the coin which is pretty annoying give the fact that they have the private key.

One thing I will tell you is that, brace yourself. This might take months or even years, or until you give up. Very sad.

I did NOT send anything wrongly - I sent the coins exactly according to KRAKEN instructions. KRAKEN typo (chain name) led to losing coins.

Three (more) months later, Kraken are ghosting even the support ticket.

Seems this is what you could expect when they are taking 'great care to protect the assets of our clients'.

I used to have a 7-fig monthly volume there; now I have 0 confidence in Kraken.

just curious, have you thought of taking legal action(I'm just asking because I am not sure if you can or can't)? I mean, I think you have a case against them. this error is a huge liability on their side and could affect many of their clients. judging from their initial response to you and your current update it looks like they aren't really taking this seriously.

For now, I will remind people to be careful (with ZERO confidence in KRAKEN).

I may fill a small court claim and will an FCA complaint.