Australian Woman Being Sued by Crypto.com After She Was Sent $7.1 Million Instead of $68

Seven months passed before Crypto.com realized that it had sent 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 requested as a refund. Now, the cryptocurrency trading site is pursuing Thevamanogari Manivel, who lives in Melbourne, as well as her sister, Thilagavathy Gangadory, in an effort to reclaim its money – in addition to ten percent interest and the costs of legal representation. Both of these individuals are being sued.

According to the evidence that was brought into the courtroom, in May of 2021, a worker for the trading platform that was located in Singapore made the mistake of typing an account number into the field that was intended for the amount of the payment. When Crypto.com was doing a routine audit in the month of December 2021, the firm discovered that it had mistakenly transferred Manivel millions of dollars. This information was discovered at that time.

According to the petition, Manivel spent around 1.35 million Australian Dollars (approximately $1.1 million) of the unexpected windfall on the acquisition of a property.

Despite the fact that bitcoin transactions cannot be reversed, it is still theoretically conceivable for centralized platforms to reverse payments that were made using cryptocurrencies in the case that fraud or error occurred. However, in this specific instance, the error was not discovered by the company until seven months later, after some of the money had purportedly been transferred or spent. This is because the company was waiting for a specific piece of information to come to light. According to the petition, the corporation was successful in persuading the authorities in February to block Manivel’s bank account; however, by the time the account was locked, the money had already been shifted to other defendants identified in the case.

The judge’s judgment was favorable to Crypto.com, and the case will be heard once more in October before an additional judge who will decide the next steps to take in the proceeding.

The lawsuit was submitted at a time when the platform was experiencing a particularly difficult time. It has been claimed that the company has gone through a second round of harsh layoffs. This comes as cryptocurrency companies across the board search for methods to cut costs in reaction to investors rotating out of the riskiest assets, which is bringing down trade volumes. The corporation terminated the employment of 260 workers in June, which accounted for 5% of the total workforce.

Bitcoin and Ether have both lost more than 58% of their value so far in 2018, while the overall worth of the cryptocurrency market as a whole has fallen below $1 trillion, having reached a high of more than $3 trillion in November 2021.

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In the meantime, Crypto.com is on the hook for a number of costly recurring payments. One of these is a multiyear naming rights arrangement with the Staples Center in Los Angeles, which is the arena in which the Lakers and the Sparks of the WNBA play their home games. The overall value of the transaction comes to 700 million dollars.

In a story that was published not too long ago, Crypto.com indicated that the company was unable to comment on the issue “because the subject is before the courts.”

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