Australian couple to face October plea hearing over mistaken $10.5M from Crypto.com

Australian couple to face October plea hearing over mistaken $10.5M from Crypto.com

The Melbourne Couple who Accidentally Got $10.5 Million: A Cautionary Tale of Crypto Mistakes

The blockchain industry has witnessed significant growth and adoption in recent years, revolutionizing various sectors by enabling secure, transparent, and decentralized transactions. However, this rapid expansion has not been without its challenges, as illustrated by the recent case of a Melbourne-based couple who accidentally received $10.5 million that was mistakenly sent by Crypto.com. This incident serves as a cautionary tale highlighting the importance of robust safeguards and due diligence in the crypto space.

In May 2021, Thevamanogari Manivel initiated a fund transfer to her partner Jatinder Singh’s Crypto.com account. Unfortunately, a discrepancy between the bank account and the exchange account was identified during the transaction. As a result, a refund was initiated, but an inadvertent error caused the exchange to transfer a staggering $10.5 million to Manivel’s bank account instead of the intended $100.

The mistake went undetected until Crypto.com conducted its annual audit in December 2021. Realizing the error, the exchange took legal action, resulting in a court judgment mandating the return of the funds to the cryptocurrency trading platform. However, before Crypto.com discovered the mistake, the Melbourne couple had already embarked on a spending spree. They reportedly purchased four houses, vehicles, and other items, including a five-bedroom property worth $1.35 million in Craigieburn. The court has ordered the sale of this property to refund the funds. Additionally, the couple sent a significant $4 million to a Malaysian bank account.

The couple now faces theft charges as a result of their actions. During the court hearing in October 2022, they argued that they believed they had won a prize from the crypto exchange, claiming to have received a notification regarding a competition. However, Crypto.com’s compliance officer, Michi Chan Fores, confirmed that no such competition existed, and the exchange had not sent any such notifications to its users. Manivel, charged with theft, later entered a guilty plea for recklessly dealing with the proceeds of the crime in September 2023. She received an 18-month community corrections order, including six months of rigorous compliance and unpaid community service, taking into account her 209 days in custody. On the other hand, Singh is scheduled for a plea trial on October 23.

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This case serves as a vivid example of the importance of vigilance and robust security measures in the blockchain industry. While blockchain technology offers numerous benefits, it also requires users to exercise caution and due diligence to prevent such inadvertent errors and potential criminal activities.

Crypto.com, the platform involved in this incident, has demonstrated its commitment to maintaining a secure environment for its users and conducting regular audits to detect any anomalies. By promptly identifying the mistake during its annual audit, Crypto.com was able to take legal action to recover the funds and bring the Melbourne couple to justice. This incident underscores the value of thorough and regular audits in the blockchain industry, helping to maintain transparency and integrity.

Despite this unfortunate incident, Crypto.com remains resolute in its expansion plans and commitment to the global market. In July, the platform obtained a license from the Dutch central bank, enabling it to offer crypto services to a wider audience. This highlights the importance of complying with regulatory frameworks and obtaining proper licenses to ensure a secure and trustworthy crypto ecosystem.

In conclusion, the accidental receipt of $10.5 million by a Melbourne couple from Crypto.com serves as a cautionary tale for the blockchain industry. It emphasizes the need for robust security measures, due diligence, and regular audits to maintain the integrity of transactions and prevent unintended errors. Crypto.com’s swift response in identifying and rectifying the mistake showcases the importance of vigilance in the crypto space. By learning from incidents like this, the industry can continue to evolve and provide secure and transparent solutions for users worldwide.

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