Crypto.com goes to court to recoup $10.5m it incorrectly sent to Melbourne woman
A cryptocurrency trading platform accidentally transferred $10.5m to a Melbourne woman instead of a $100 refund — and didn’t realise for months.
Victoria
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One of the world’s largest cryptocurrency trading platforms accidentally transferred $10.5m to a Melbourne woman instead of a $100 refund — and took seven months to realise.
Crypto.com, which has used mega stars such as Matt Damon to advertise, and reportedly splashed $25m on AFL and AFLW sponsorship deals, has launched Supreme Court action against Melbourne woman Thevamanogari Manivel and her sister Thilagavathy Gangadory after finding it erred in sending her $10,474,143 in May 2021.
The court heard the company accidentally entered an account number in the payment field instead of the $100 refund.
“Extraordinarily, the plaintiffs allegedly did not realise this significant error until some seven months later, in late December 2021,” Supreme Court judge James Dudley Elliott found.
The mistake had been discovered only in a company audit just before Christmas.
By the time Crypto.com was able to act and try to recoup the cash, the money had been moved about and used to buy a $1.35m Craigieburn house.
The “distinguished” Liewah Circuit house, with five bedrooms, four bathrooms, a home gym and cinema in a “monochrome palette”, is listed as having been sold on February 3.
Four days later, Crypto.com made freezing orders against Ms Manivel’s Commonwealth Bank account. But by then, court documents show $10.1m had been dispersed to a different joint account, $430,000 had been transferred to her daughter, Raveena Vijian, and the Craigieburn property had been purchased.
Within weeks, the property’s registration was transferred to her sister, Ms Gangadory, who lives in Malaysia, before the company could then take freezing orders against her in March.
Crypto.com, registered as Foris GFS Australia, launched legal action against Ms Gangadory to recoup the $1.35m tied to the sale of the Craigieburn property, along with 10 per cent interest.
But she didn’t appear for the case, the court hearing her only correspondence was to her sister’s lawyers after they sent her documents. “Received, thank you,” she replied.
The court was told Ms Gangadory was “seeking legal advice” and her lawyers “would be in contact”, but they did not appear.
Justice Elliott ordered Ms Gangadory pay the company $1.35m, interest of $27,369 and costs, and that the Craigieburn property be sold.
It is believed that orders had been made separately over the remaining money.
The commercial division of the Supreme Court heard the case in May, with reasons for Justice Elliott’s judgment being handed down last week.
A Cornwalls Law, which is representing Crypto.com, said it would not comment.
The sisters could not be contacted.
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