Crypto.com Accidentally Sent $7 Million to Customer — Sues 7 Months Later to Get It Back
Cryptocurrency exchange Crypto.com accidentally transferred about $7.26 million to a customer’s account but did not notice the error for seven months. The crypto company has now suedthe customer to recover the funds. Crypto.com Sues Customer 7 Months After Mistakenly Transferring over $7 Million
The Australian Supreme Court of Victoria released a default judgment Friday in a case where crypto exchange Crypto.com accidentally transferred more than AUD$10.47 million ($7.26 million) to a customer’s account on May 20, 2021.
The crypto firm made claims against eight defendants, including Thevamanogari Manivel, the Crypto.com customer whose account received the AUD$10.47 million in error. The court document shows that in May last year: Instead of refunding $100 [Australian dollars] as intended, $10,474,143 was erroneously transferred … to Manivel after an account number was accidentally entered into the payment amount field.
“Extraordinarily, the plaintiffs allegedly did not realize this significant error until some 7 months later, in late December 2021,” the court document adds.
Crypto.com noticed the error when an audit was performed in December 2001 and subsequently filed a lawsuit against the customer and related parties to recover the transferred funds.
The judgment details that Manviel disbursed AUD$10,100,000 to an account held jointly with another defendant in May 2021 after receiving AUD$10.47 million from Crypto.com. On Jan 31, she transferred AUD$430K from the joint account to her daughter, Raveena Vijian.
Manviel allegedly used the money erroneously sent to her to buy a $1.35 million house in Melbourne and transferred ownership to Thilagavathy Gangadory, a different defendant. Gangadory, Manivel’s sister who resides in Malaysia, became the registered proprietor of the property on Feb. 21 this year.
Crypto.com unsuccessfully tried to freeze Gangadory’s bank accounts in March. Friday’s default judgment ordered Gangadory to pay the crypto firm $1.35 million, sell the property, and pay interest calculated from March 1 to the date of judgment. Tags in this story accidentally sent funds, crypto customers, crypto exchange, Crypto.com
Do you think the customer should return the funds received in error from Crypto.com? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Ripple to Participate in the Digital Dollar Project"s CBDC Sandbox Program FEATURED | 3 mins ago Elon Musk Outlines New Reasons to End Twitter Deal Citing Whistleblower FEATURED | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCongress Questions Coinbase, FTX, Binance, Kraken in Crypto Fraud Crackdown Next articlePresident of Paraguay Mario Abdo Vetoes Cryptocurrency Bill Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin