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HomeLaw & PoliticsCrypto.com sues user after transferring over $7 million

Crypto.com sues user after transferring over $7 million

Crypto exchange Crypto.com accidently transferred $7.26 million in a customer's account on May 20, 2021 and did not catch the mistake for the next seven months

On May 20, 2021, crypto exchange Crypto.com accidentally deposited $7.26 million into a customer’s account and failed to notice the error for the following seven months. Currently, the crypto business is suing the user to get the money back. Thevamanogari Manivel, a Crypto.com user whose account mistakenly received AUD$10.47 million, was one of the eight defendants named in the crypto company’s lawsuit. According to the court filing, in May of last year:

“An account number was unintentionally placed into the payment amount section, causing $10,474,143 to be mistakenly sent… to Manivel instead of the planned reimbursement of $100 [Australian dollars].”

The court filing further states that “extraordinarily, the plaintiffs allegedly did not recognise this substantial error until about 7 months later, in late December 2021.”

In order to retrieve the deposited funds, Crypto.com filed a lawsuit against the client and any associated parties after discovering the mistake during an audit in December 2001. On September 1, the Australian Supreme Court of Victoria imposed a default judgement. According to the verdict, Manviel transferred AUD$10,100,000 to a joint account in May 2021 after receiving AUD$10.47 million from Crypto.com. She sent her daughter Raveena Vijian AUD$430K from the joint account on January 31.

Manviel reportedly transferred ownership of the $1.35 million Melbourne home to another defendant, Thilagavathy Gangadory, using the funds that were mistakenly delivered to her. On February 21 of this year, Manivel’s Malaysian-based sister Gangadory took over as the property’s registered owner.

In March, Crypto.com attempted in vain to freeze Gangadory’s bank accounts. In accordance with Friday’s default decision, Gangadory was required to sell the property, pay the crypto company $1.35 million, and pay interest calculated from March 1 to the day of the verdict.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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