The Matt Damon-backed Crypto.com took seven months to realize that it had unintentionally sent an Australian woman 10.5 million Australian dollars (about $7.1 million at the current exchange rate) instead of the 100 Australian dollars she had requested as a refund. Thevamanogari Manivel and her sister Thilagavathy Gangadory, who both reside in Melbourne, are currently being sought by the bitcoin trading platform in an attempt to recover their money as well as 10% interest and legal fees.
The Singapore-based trading platform employee accidentally put an account number in the field for the payment amount in May 2021, according to court documents. Crypto.com found it had accidentally sent Manivel millions of dollars in December 2021 while doing a routine audit.
Manivel put about $1.35 million of the unanticipated windfall into real estate, according to the study.
Although Bitcoin transactions cannot be undone, they may theoretically be in the case of fraud or error in centralised systems. However, it appears that in this instance, some of the funds were transferred or used before the company realized its error, which was discovered seven months later.
The corporation convinced the authorities to freeze Manivel’s bank account in February, but the complaint claims that she had already transferred the money to other defendants who were parties to the case.
As a result of the judge’s decision in favour of Crypto.com, the matter has been referred to the court for additional proceedings in October.
The lawsuit comes at a trying time for the platform. The company let go 260 employees in June, or 5% of its workforce, and it appears that a second wave of dramatic layoffs has occurred as all cryptocurrency companies look for ways to cut costs as investors pull out of the riskiest assets and trade volumes decline.
While the overall cryptocurrency market has declined below $1 trillion from $3 trillion at its peak in November 2021, bitcoin and ether have both declined by more than 58% this year.
A $700 million, multiyear naming rights agreement to the Staples Center in Los Angeles, which serves as the home of the Lakers and the WNBA’s Sparks, is among the significant ongoing payments that Crypto.com must make.
In a response to CNBC, Crypto.com stated, “As the matter is before the courts, we are unable to comment.”