One of the crypto exchanges that is quite well-known in the market is Crypto.com, which has also been endorsed by Matt Damon, something that has added to its popularity.
However, it took the exchange about 7 months to realize that it accidentally sent $7.1 million dollars to an Australian woman instead of the AU$100 refund that she had requested.
Of course, the crypto trading platform wants to recover the money it accidentally transferred, so it has decided to sue the woman in question and is also demanding 10% interest, along with legal fees.
Based in Melbourne, Thevamanogari Manivel and Thilagavathy Gangadory, have been sued by Crypto.com.
According to court documents, an employee of the trading platform entered an account number in the payment amount field by mistake back in May 2021.
When the Singapore-based trading platform conducted a routine audit in December 2021, it realized that millions of dollars had mistakenly been sent to Manivel.
The filing disclosed that about AU$1.35 million of the AU$10.5 million that Manivel had received accidentally was spent on a property.
Crypto transactions, by their nature, are considered irreversible. But, theoretically, it is possible for centralized platforms to reverse payments in case there is an error or fraud of any kind.
The problem, in this case, is that it took seven long months for Crypto.com to discover the error, during which time some of the money had been spent or moved.
In February, the company had managed to convince the authorities to freeze its accounts of Manivel, but the money had already been transferred to her sister’s accounts by that time.
Therefore, she has also been named as a defendant in the case. The ruling was in favor of Crypto.com, so the case will return to court in October in order to determine the next steps that should be taken.
This lawsuit comes at a very difficult time for Crypto.com, as it is feeling the impact of the crypto winter that appears to be happening.
The company fired 5% of its workforce back in June, which is around 260 employees, and reports have revealed that it has also initiated another round of cuts.
A number of crypto companies in the space have been looking for ways to reduce costs, as trading volumes have gone down because investors are moving away from riskier assets.
The crypto market has seen its total market cap go below the $1 trillion mark and leading cryptocurrencies like bitcoin and ether have seen their values decline by nearly 58% this year.
At its peak back in November last year, the total market capitalization of the crypto industry had reached $3 trillion.
As far as Crypto.com is concerned, it also has some high payments to make, which include a whopping $700 million to the Staples Center in Los Angeles.
The company had signed a naming rights deal for the home of the WNBA’s Sparks and the Lakers. Talking about the lawsuit, the company said that the matter would be dealt with in court.