Crypto.com, a platform that Matt Damon himself endorsed, is suing a woman after accidentally sending her $7.1 million in refund instead of $58. As per allegations, the woman has spent and transferred the money, which is why the platform is now suing her.
In a previous report by Tech Times, we narrated how the woman received $7.1 million instead of $68. During that report, the value of the amount she received was still $7.2 million.
Crypto.com Tries to Sue Woman for the Accidentally Sent $7.1 Million
According to the story by CNBC, the incident did not happen overnight, as Crypto.com took several months before they realized their accident. A woman in Australia was supposed to receive $100 AUD in refunds, but she then received $10.5 million AUD.
When translated to USD, the woman requested a $68 refund but got $7.1 million as per press time's exchange rate. The woman is being sued along with her sister for the full amount plus a 10% interest along with legal fees.
$1.35 Million AUD Reportedly Spent on a Property
As per court documents in May 2021, a Singapore-based employee for the trading platform entered an account number into the payment amount field. This meant that the platform had sent millions in December 2021 when it was just conducting a regular routine audit.
The lawsuit being filed by Crypto.com is against Thevamanogari Manivel and her sister Thilagavathy Gangadory who are both Melbourne based. As per the filing, Manivel had already spent $1.35 million AUD of the money she accidentally received on a property.
Crypto.com Convinced the Company to Freeze Her Account
Although crypto transactions are not designed to be reversible, centralized platforms function in a different way and can theoretically get the payments reversed in cases of either error or fraud. In this instance, however, the error was not discovered until seven months later.
It was noted that in seven months, some of the money had been allegedly either moved or spent. As per the filing, Crypto.com had already tried to convince authorities to freeze her bank account, but she had already been able to send the money to other defendants that were mentioned in the case.
Read Also: Crypto.com Accidentally Transfers $7.2 Million to A Customer Instead of a $68 Refund Due to Typo
Lawsuit Comes at a Time that Crypto.com Let Go of 5% Of Its Workforce
As per CNBC, the ruling by the judge was in favor of Crypto.com and is scheduled to return to court in October. During that time, the judge will determine what the next steps for the case should be.
The lawsuit reportedly comes at a tough time for the platform as it had just let go of 5% of its workforce, or a whopping 260 employees. The company had already gone through a "second round of aggressive cuts" as the firms across the board are also looking for other methods for them to cut costs with trade volumes dropping down.
That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce.
— Kris | Crypto.com (@kris) June 11, 2022
Crypto.com is also left with some huge payments, including a multiyear naming rights deal for $700 million to the Los Angeles Staples Center, the home of the Lakers and WNBA's Sparks.
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Written by Urian B.
