Crypto-currency exchange Crypto.com accidentally transferred about $7.26 million to a customer’s account, but didn’t notice the mistake for seven months. The crypto-currency company has now sued the customer to recover the funds.
Crypto.com is suing a customer 7 months after mistakenly transferring over $7 million.
The Australian Supreme Court of Victoria issued a default judgment on Friday in a case where crypto-currency exchange Crypto.com accidentally transferred more than A$10.47 million ($7.26 million) into a customer’s account on May 20, 2021.
The crypto exchange has filed a lawsuit against eight people, including Thevamanogari Manivel, the Crypto.com customer whose account received the A$10.47 million by mistake. The court document shows that in May last year :
Instead of refunding $100. [Australian dollars] as expected, $10,474,143 was mistakenly transferred to Manivel after an account number was accidentally entered in the payment amount field.
“Extraordinarily, the plaintiffs (crypto.com) did not allegedly realize this significant error until some 7 months later, in late December 2021“, the court document adds.
Crypto.com noticed the error during an audit in December 2001 and subsequently filed a lawsuit against the client and related parties to recover the transferred funds.
The judgment details that Manviel disbursed AUD$10,100,000 to an account held jointly with another defendant in May 2021 after receiving AUD$10.47 million from Crypto.com. On January 31, she transferred AUD$430,000 from the joint account to her daughter, Raveena Vijian.
Manviel allegedly used the money mistakenly sent to her to buy a $1.35 million house in Melbourne and transferred ownership to Thilagavathy Gangadory, another defendant. Gangadory, Manivel’s sister who resides in Malaysia, became the registered owner of the property on February 21 this year.
Crypto.com unsuccessfully tried to freeze Gangadory’s bank accounts in March. Friday’s default judgment ordered Gangadory to pay the crypto company $1.35 million, sell the property and pay interest calculated from March 1 to the date of the judgment.