February 5, 2023

Crypto.com accidentally transferred $10.5 million instead of $100 to a Melbourne resident

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Crypto.com accidentally transferred $10.5 million instead of $100 to a Melbourne resident

One of the most popular crypto platforms in Australia, Crypto.com, accidentally transferred 105,000 more funds to the client than it was obliged to - the error was found after seven months.

The error took place in May 2021 whenthe company attempted to refund Ms. Thevamanogari Manivel $100. Instead, the operations worker entered the account number instead of the transfer fee and sent the client $10.5 million. The Crypto.com exchange did not go to the Supreme Court of Victoria until February next year.

When Crypto.com's lawyers tried to return the money to the exchange, it turned out that the woman had already spent $1.35 million on a luxurious five-bedroom house, and transferred the rest to different accounts.

Crypto.com won an order to freeze Manivel's bank account, but court documents show that the money is no longer there: $10.1 million went to some other joint account, and $430,000 to the account of Tewamanogari Manivel's daughter.

As the judicial authorities were able to establish, Manivelmoved permanently to Malaysia. Therefore, the plaintiffs failed to serve the order to freeze the account, along with other documents relevant to the proceedings.

Commercial Division of the Supreme Court of Victoriahandled the Crypto.com case against a client from May 2022 to August. In view of the absence of the defendant, the judge ruled on the basis of the evidence available to the court. The judge announced that the woman “did not respond to any correspondence from (Crypto.com) attorneys” and that “as a result of the failure to appear, the statements contained in the exchange’s statement of claim are considered accepted.”

As a result, Tewamanogari was ordered in absentia to payCrypto.com $1.35 million, $27,369 in interest, legal fees, and a five-bedroom home for sale.

Crypto.com's attorneys at Cornwalls Law have not said what will happen to the rest of the money erroneously transferred to Manivel, citing the case is still in court.

In January, Singapore-based cryptocurrency platform Crypto.com announced
on the temporary suspension of the withdrawal of funds. Representatives of the platform referred to suspicious activity that threatens the security of clients' assets.