Singapore Court Freezes S$75 Million in Crypto Over Ledger Error

The conflict centers on a July 2024 incident where the platform, identified in court documents as part of a group including DVA, DVB, and DVC, inadvertently transferred 2,500 BTC and 2,500 BCH to a customer who had been using the service since 2013. The platform claims these funds were issued based on faulty records regarding discontinued self-custody wallets, which had actually been emptied by the user in 2020.

While the platform successfully reclaimed 1,700 BTC and the full balance of Bitcoin Cash after discovering the discrepancy, the customer had already moved 780 BTC and converted a portion into 816,773 USDC. The court-ordered freeze now prevents the defendant from disposing of these assets while the case, which includes claims of unjust enrichment and deceit, proceeds to trial. The customer denies wrongdoing, asserting that he believed the transferred crypto belonged to him and that the platform’s ledger records were unreliable. A three-judge panel determined there is a serious case to be tried, citing the risk of asset dissipation given the defendant’s use of the crypto as loan collateral.