Melbourne Couple Faces Trial for Inadvertent Crypto Windfall
A Melbourne couple is scheduled to go on trial in October after accidentally receiving AUD 10.5 million ($6.7 million) from Crypto.com earlier this year. The couple spent the money before the mistake was discovered. The incident occurred when Thevamanogari Manivel transferred funds to her partner Jatinder Singh’s Crypto.com account, but the bank account did not match the exchange account, resulting in a refund. However, instead of a AUD 100 ($67) refund, Crypto.com mistakenly sent AUD 10.5 million to the couple.
Crypto.com Discovers Error During Annual Audit
Crypto.com only became aware of the error during its annual audit in December 2021. Following the discovery, the exchange filed a lawsuit in the Victoria Supreme Court to retrieve the funds. However, the couple claimed that they had already spent most of the money. They used it to buy houses, vehicles, and other items, and also sent around 4 million AUD to a Malaysian bank account.
Couple Believed They Had Won a Prize
During the court proceedings in October 2022, the couple argued that they believed they had won a prize from Crypto.com. Singh claimed he received a notification about a competition from the company in the past. However, Crypto.com’s compliance officer, Michi Chan Fores, denied sending any such notifications to users.
Guilty Plea and Sentencing
In September 2023, Manivel pleaded guilty to recklessly dealing with the proceeds of the crime and received an 18-month community corrections order. This includes six months of intensive compliance and unpaid community work. Singh is set to face a plea trial on October 23 to present his defense.
Crypto.com’s Previous Mistakes
This is not the first time Crypto.com has made a transaction error. In October of last year, the exchange mistakenly sent 320,000 ETH (worth around $400 million) to a wallet address linked to Gate.io. The funds were eventually returned, and Crypto.com implemented new processes and features to prevent similar incidents. The exchange has also faced criticism for deploying internal teams to trade tokens for profit.
Hot Take: Melbourne Couple’s Costly Mistake with Crypto Windfall
A Melbourne couple’s accidental windfall from Crypto.com turned out to be a costly mistake. After mistakenly receiving AUD 10.5 million, they proceeded to spend the money before the error was discovered. Despite claiming they believed it was a prize, they were ordered to return the funds and face legal consequences. This incident highlights the importance of double-checking transactions in the crypto world and the potential consequences of mishandling large sums of money. It also raises concerns about Crypto.com’s transaction accuracy and internal practices, as this is not the first time such errors have occurred.
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