Cryptocurrency exchange Crypto.com accidentally transferred approximately $7.26 million to a customer’s account, but did not notice the error for seven months. The crypto company has now sued To recover customer money.
Crypto.com Sues Customer 7 Months After Accidentally Transferring Over $7 Million
The Australian Supreme Court of Victoria issued a default judgment on Friday where crypto exchange Crypto.com mistakenly 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 Thewamanogari Manivel, a Crypto.com customer whose accounts mistakenly received AUD$10.47 million. Court documents show that in May last year:
$100. instead of returning [Australian dollars] As intended, $10,474,143 was mistakenly transferred to Moneywell … after an account number was mistakenly entered in the Payment Amount field.
“Extraordinarily, the plaintiffs reportedly did not realize this significant error until some 7 months later, at the end of December 2021,” the court document said.
Crypto.com noticed the error when an audit was conducted in December 2001 and subsequently filed suit against the customer and related parties to recover the transferred funds.
The judgment states that Manvill jointly distributed AUD$10,100,000 with another defendant in May 2021 after receiving AUD$10.47 million from Crypto.com. On January 31, he transferred AUD$430K from the joint account to his daughter Raveena Vijian.
Manville allegedly used the misappropriated money to buy a $1.35 million home in Melbourne and transferred ownership to a separate defendant, Thilagavathi Gangadori. Manivel’s sister Gangadori, who lives in Malaysia, became the registered owner of the property on February 21 this year.
Crypto.com unsuccessfully attempted to freeze Gangdori’s bank accounts in March. Friday’s default ruling ordered Gangdori to pay $1.35 million to the crypto firm, sell the assets, and pay the calculated interest from March 1 to the date of the decision.
Do you think the customer should return the money he received in error from Crypto.com? Let us know in the comments section below.
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