When processing a $100 refund for an Australian woman, the cryptocurrency trading platform Crypto.com sent her $10.5 million instead. They didn't notice the mistake for seven months. When processing a $100 refund, the cryptocurrency trading platform Crypto.com inadvertently transferred $10.5m to an Australian woman and failed to spot the issue for seven months.
The corporation, which paid Hollywood actor Matt Damon to appear in a Super Bowl commercial with the motto "fortune favors the bold," realized in December 2021, seven months after the blunder was made, that it had transferred the money to Melbourne woman Thevamanogari Manivel.
Inadvertently entering Manivel's account number into the payment amount section caused Crypto.com, which operates as Foris GFS in Australia, to pay out $10.5 million instead of $100.
This year, the company filed a lawsuit in the Victorian supreme court and was granted a freeze on Manivel's Commonwealth Bank account in February. However, the majority of the funds had been transferred to other accounts, which were also subsequently stopped.
The court heard that $1.35 million of the funds were used to purchase a four-bedroom home in Craigieburn, Melbourne's north, in February. The property was subsequently transferred into the name of Manivel's Malaysian sister, Thilagavathy Gangadory.
Crypto.com's attorneys were unable to serve Gangadory the freezing orders since she never responded to their emails. The only correspondence submitted to the court was an email response to Manivel's attorneys that read "received, thank you."
The court heard that Manivel's attorneys alerted Crypto.com that Gangadory was "seeking legal guidance."
As a result, Crypto.com was given a default judgment that told Gangadory to sell the property as soon as possible. The money from the sale, plus interest of $27,369.64 and costs, would go to Crypto.com.
As a result, Crypto.com was issued a default judgment compelling Gangadory to sell the property as quickly as feasible, with the proceeds going to Crypto.com along with $27,369.64 in interest and costs.
Crypto.com didn't say anything about the case while it was in court. While the issue was pending in court, Crypto.com declined to comment on it.
In June, Crypto.com announced it was laying off 260 staff owing to the bear market in cryptocurrencies. But The Verge said that the company had laid off many more people without telling the rest of the staff.
The cryptocurrency market went down just a few months after the AFL and Crypto.com announced a five-year deal for Crypto.com to be the "official cryptocurrency exchange and trading platform for the AFL and the AFLW."
In May, Crypto.com said that it was still fully on board with the deal. In May, Crypto.com stated that it remained entirely committed to the agreement. A spokeswoman stated, "We are well-funded, and these multiyear contracts will continue to play an important part in our quest to speed the world's transition to cryptocurrency."
