In a twist of fate, a Melbourne couple found themselves facing a plea trial after allegedly spending a whopping $10.5 million Australian dollars (AUD) accidentally sent to them by Crypto.com. The unexpected, and ostensibly mistaken, transfusion occurred in May 2021 when Thevamanogari Manivel attempted to add 100 AUD to her partner’s Crypto.com account. The exchange’s system flagged an issue, as the bank account details weren’t matching with the exchange account.
The platform initiated a refund, but rather than reimbursing the initial 100 AUD, it mistakenly wired 10.5 million to Manivel’s account. The irregularity was not discovered until December 2021 during an annual audit. Embarking on a legal trail, Crypto.com sued the couple and had the Victoria Supreme Court affirming that the funds should be returned.
The rub, however, is that Manivel and Jatinder Singh, her husband, allegedly spent a significant portion of the funds before the error was discovered. The couple faced charges of buying properties, vehicles, and transferring about 4 million AUD overseas. Furthermore, one of the purchased properties, a stunning five-bedroom house in Craigieburn, had court orders to be sold and funds returned to the exchange.
Interestingly, the couple defended their actions in October 2022 arguing they thought they had won a prize from Crypto.com. Singh rationalised this by recalling a notification he received from the platform about a competition. Although Crypto.com’s compliance officer, Michi Chan Fores, refuted the existence of such a competition, insisting the exchange never sends such notices.
Ultimately, Manivel pleaded guilty to recklessly dealing with the proceeds of crime and was sentenced to 18 months of community corrections. Singh is now scheduled to face a plea trial on Oct. 23.
Recounting such an incident presents a palpable example of the very real implications of system glitches in the crypto world. It raises questions on the efficiency of security measures in place within crypto exchanges. On one hand, its importance for transparency and legal compliance for users cannot be overstressed; on the other, it becomes apparent that cryptocurrency platforms must also strengthen their checks and balances to prevent such critical errors.
Source: Cointelegraph
