Crypto.com's typo mistakenly transfers A$10.5 mn to customer, now court saga begins

Cryptocurrency exchange Crypto.com mistakenly issued a customer A$10.5 million ($7.2 million) rather than the expected A$100 ($68) and now running around courts to get it back

Just one typ error, cryptocurrency exchange Crypto.com mistakenly issued a customer A$10.5 million ($7.2 million) rather than the expected A$100 ($68), and now started the inevitable court saga to get it back.

The initial transfer occurred in May 2021. Seven months later, when the exchange discovered the error, but by then some of the money had already gone, reported the Australian news outlet 7News.

Global regulator for banks red-flags crypto-assets such as BitcoinIANS

However, the exchange finally realised the mistake when conducting an audit in December that year but by then more than 80% of the amount was spent by her.

Thevamanogari Manivel, the customer in question, reportedly transferred the money to a joint account and spent $890,526 on a lavish, five-bedroom mansion for her sister instead of reporting the inaccurate return to the cryptocurrency exchange.

Now the company's fighting to get its cash back with a lawsuit filed in the Victoria Supreme Court. The court has ordered Manivel to sell the home and return the money (with interest) to the exchange. The case will resume in court this October again.

Crypto.com under metldown

As reported already, the crypto lending exchange Crypto.com has come under pressure due to the latest meltdown in the cryptocurrency domain and laid off more employees in the second round and this time.

In its call last month, the Singapore-based company fired reportedly more than 1,000 employees even though they officially announced laying off 260, a Crypto.com employee had said on LinkedIn.

"They've removed the company directory so we can't see the numbers go down. It's not good for morale to see that 1/3 of the invitation list on your next meeting is disabled accounts," the employee had mentioned.

In June, Crypto.com announced it's laying off around 260 employees, or nearly 5 per cent of its workforce. Its CEO Kris Marszalek said the company's approach is to stay focused on executing against its roadmap and optimising for profitability.

(With inputs from IANS)