It took Crypto.com seven months to recognize that it had transferred a woman in Australia AU$10.5 million dollars (about $7.1 million at the current conversion rate), rather than the 100 Australian dollars that the woman had sought as a refund. Now, the cryptocurrency trading platform is going after Thevamanogari Manivel, who resides in Melbourne, as well as her sister, Thilagavathy Gangadory, in an effort to retrieve its money — along with ten percent interest and the costs of legal representation.
According to the records presented in court, in May of 2021, a worker for the trading platform situated in Singapore made the error of entering an account number into the field for the payment amount. When Crypto.com was carrying out a standard audit in December 2021, it was then that the company learned it had sent Manivel millions of dollars in error.
According to the petition, Manivel invested around AU$1.35 million of the unexpected windfall in the purchase of a property.
Even though bitcoin transactions cannot be undone, it is theoretically possible for centralized platforms to undo payments made using cryptocurrencies in the event of fraud or error. However, in this particular instance, the mistake was not uncovered by the corporation until seven months later, after some of the money had reportedly been transferred or spent. According to the petition, the corporation was successful in convincing the authorities in February to freeze Manivel’s bank account; however, the money had already been moved to other defendants mentioned in the case by the time the account was frozen.
The judge’s decision was favorable to Crypto.com, and the matter will be heard again in October before another judge who will decide the next measures to take in the proceeding.
The lawsuit was filed during a particularly challenging period for the platform. It has been reported that the company has gone through a second round of aggressive cuts, as crypto firms across the board look for ways to cut costs in response to investors rotating out of the riskiest assets, which is pulling down trading volumes. In June, the company let go of 260 employees, which represented 5% of its workforce.
Both bitcoin and ether have experienced losses of more than 58% so far in 2018, and the total value of the cryptocurrency market as a whole has dropped below $1 trillion, having peaked above $3 trillion in November 2021.
In the meantime, Crypto.com is responsible for some hefty ongoing payments, including a multiyear naming rights deal with the Staples Center in Los Angeles, which is the home of the Lakers and the Sparks of the WNBA. The deal is worth a total of $700 million.
In a recent report, Crypto.com stated that the company was unable to comment on the topic “since the matter is before the courts.”
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