Cryptocurrency exchange platform Crypto.com transferred $10.5 million to a woman instead of $100 due to a mistake. It did not notice the error until seven months later.
Australian woman Thevamanogari Manivel requested a refund in May 2021. However, the admin officials accidentally entered her account number into the payment field instead of the refund amount.
In December 2021, Crypto.com found that it had sent millions of dollars to Manivel instead of her $100 refund. The crypto exchange operates as Foris GFS in Australia, so the latter launched legal action against the woman.
It also froze Manivel’s account, but she had already allocated the funds for various purposes. For example, a court heard that she spent $1.35 million for a four-bedroom property on Cragieburn, Melbourne.
Manivel transferred its ownership to her sister Thilagathy Gagadory who resides in Malaysia. Moreover, she deposited the remaining funds into other accounts.
Recent attempts to freeze the accounts have been unsuccessful. Also, attempts to reach Manivel via Crypto.com’s solicitors have also failed.
One of their emails received a short message, “Received, thanks.” The solicitors claim she is seeking legal advice. In response, the Victoria supreme court gave a default judgment favoring Crypto.com.
The court does not consider the curt message as a clear response. Consequently, it allowed the crypto exchange to sell the property by force as soon as possible.
At the time of writing, Manivel owes interest of $27,369.64. Also, Crypto.com declined to comment while the case is still in court.
It hired Hollywood megastar Matt Damon for its Super Bowl commercial in 2021. As a result, many people have been following the Crypto.com debacle recently.
What is Crypto.com?
Photo Credit: coinjournal.net
Some people recently learned about the platform as the “Matt Damon crypto” exchange. After all, he is front and center on its homepage. However, it has been operating for years.
Rafael Melo founded it in 2016 and placed its office in Singapore. Also, Crypto.com uses the Cronos blockchain network with its namesake cryptocurrency, Cronos (CRO).
Cronos allows Crypto.com users to reduce transaction fees, expand their payment systems, and work with other blockchains. However, it follows a format that makes it liable for the recent million-dollar mishap.
It uses the Proof-of-Authority (PoA) model that lets the Cronos network become centralized and decentralized. Unlike other crypto networks, a select group of trusted validators manages the transactions.
That is why admin officials had to fill out details for Manivel’s transactions. However, they must be careful as cryptocurrency transactions do not allow both parties to undo their actions.
In other words, one party cannot get money back once it and the other side agree to the transfer. Retrieving the funds will require another pair of approvals.
It explains why Crypto.com had to reach out to Manivel regarding the funds. Overall, the Matt Damon crypto issue explains why people should take care whenever investing in assets.
A famous celebrity may attract attention to a cryptocurrency, but investors should research more about the coin by themselves. On the other hand, crypto firms must be careful with client transactions.
Note that this article does not provide investment advice. It only reports on the issue regarding Matt Damon-backed Crypto.com. Learn more about investing by reading more Inquirer articles and other online sources.