Tzoni Raykov Expresses Concerns Over Revolut’s Lack of Clear Deposit Instructions
For Tzoni Raykov, trading cryptocurrency initially seemed like a lighthearted endeavor, but losing $1,500 due to an administrative mistake has raised significant concerns regarding his treatment within the industry. An oil engineer by profession, Raykov has utilized Revolut’s app for several years for everyday transactions, such as splitting bills with friends in traditional currencies like the pound and the dollar. However, after noticing the company’s promotion of its cryptocurrency services, he decided to explore this new avenue.
Frustrations Arise from a Complicated Transfer Process
What Raykov expected to be a simple transfer of digital coins turned into a frustrating ordeal that left him both angry and financially impacted. His experience underscores the challenges many face in the cryptocurrency realm, where customer protections commonly found in traditional banking, some of which are legally mandated, often do not apply. “When they treat you like this, it makes you feel like you can’t do anything,” he shared with BBC News, conveying a sense of helplessness.
Initial Transfer Success Quickly Turns into a Problematic Transaction
Although Bitcoin remains the leading cryptocurrency, Raykov was already familiar with a variety of digital coins, including USDC, which he had accumulated in a separate account. His troubles began in February when he attempted to transfer USDC to his Revolut account. Following the platform’s recommendations, he started by sending a small amount, 10 coins valued at $10, which successfully credited to his account. However, when he later tried to transfer a larger sum of 1,500 USDC, the funds failed to appear in his account despite the transfer being completed.
Confusion Over Network Selection Leads to Loss of Funds
Raykov attributes the issue to the ambiguity in Revolut’s deposit instructions. When transferring cryptocurrency, users must select a specific network, akin to choosing a shipping service for parcel delivery. Revolut’s guidelines specify that USDC should be sent via the Polygon network. For his initial successful deposit, Raykov selected “Polygon PoS.” However, during his second attempt, he mistakenly chose “Polygon (bridged),” believing it would work similarly. This choice resulted in his coins being converted into USDC.e, a different cryptocurrency that Revolut does not support.
Support Response Fails to Clarify the Issue
After noticing the absence of the 1,500 coins in his account, Raykov reached out to Revolut’s support team. According to messages reviewed by BBC News, the support representatives indicated that the issue stemmed from the type of Polygon network selected, which led to the conversion. In another message, they acknowledged the app’s lack of clarity regarding the distinction between standard and bridged networks and promised to consider his feedback for future enhancements. Raykov believes that clearer instructions could have prevented his predicament.
Revolut’s Response Contradicts Customer Support Claims
When contacted for comment, Revolut provided a different explanation. They asserted that the deposit failure was not due to Raykov’s selection of the wrong Polygon network but rather because the USDC.e tokens they received were unsupported by their system. The company added that recovering unsupported assets is beyond their scope, a standard practice in the industry due to the complexities involved in managing various tokens and networks.
Frustration Over Lost Funds Amid Industry Growth
Raykov finds this treatment unacceptable from a company of Revolut’s stature and reputation, particularly given its substantial user base in the UK and its recent acquisition of a provisional banking license. In traditional banking, erroneous transfers of standard currency are typically rectified by reverting the funds to the customer, a safeguard established by a voluntary code of practice signed by most UK banks in 2014. Unfortunately, such protections do not exist in the cryptocurrency sector.
Efforts to Resolve the Issue Prove Futile
Despite reaching out to Revolut multiple times, Raykov has been informed that the coins are essentially lost. “They are waiting for me to get bored and give up, to accept the money is gone. But I won’t,” he stated, emphasizing that the coins are still within Revolut’s system. While his loss is significant to him, it pales in comparison to the overall size of the cryptocurrency market, which has seen substantial growth over the past year and a half.
Industry Challenges and Calls for Regulation
The global cryptocurrency market reached a peak valuation of $3.9 trillion in December, driven by various factors, including political developments. However, it has since decreased by $1.1 trillion, as reported by CoinGecko. Regulatory environments are evolving, even as the industry grapples with scandals, such as the collapse of FTX, a leading cryptocurrency firm, which resulted in the conviction of its CEO for fraud.
Need for Improved Security and Accountability
Recent incidents, such as Bybit losing $1.5 billion in a hack attributed to North Korean operatives, further illustrate the vulnerability of cryptocurrency firms. Following the breach, Bybit’s CEO acknowledged the need for better security measures. Professor Mark Button, who studies cybercrime, emphasizes that rapid growth in the cryptocurrency sector can outpace the establishment of necessary accounting and security protocols. He advocates for regulatory frameworks to ensure accountability within the industry.
Importance of Personal Responsibility in Cryptocurrency Transactions
In Raykov’s situation, more robust regulations could have facilitated the recovery of his funds or provided compensation for the mishap. Stricter industry standards might have also prevented him from executing the erroneous transaction in the first place. Mykhailo Tiutin, CTO at AMLBot, a cryptocurrency transaction analysis firm, asserts that while cryptocurrency can be safe for general use, individuals must be discerning when selecting services. He too has encountered losses due to mistakes in transactions, underscoring the importance of conducting thorough research and recognizing that both gains and losses ultimately fall under personal responsibility.
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