Crypto.com Mistakenly Sent a Customer .2M Instead of a  Refund – The Verge

Crypto.com Mistakenly Sent a Customer $7.2M Instead of a $68 Refund – The Verge

Los Angeles Lakers Arena sponsored cryptocurrency exchange Crypto.com, backed by Matt Damon, accidentally transferred A$10.5 million (~$7.2 million) to an Australian client due to a rather unfortunate typo instead of the standard A$100 (~$68 ) to issue. According to Australian news outlet 7News (via CoinTelegraph), the exchange didn’t realize the bug until seven months later, and by that time some of the money was already gone.

The first transfer was made in May 2021 after an employee accidentally entered an account number in the payment amount field. Crypto.com only noticed the error when conducting an audit in December 2021.

Apparently code is not law

Instead of reporting the false refund to Crypto.com, the customer in question, Thevamanogari Manivel, reportedly transferred the money into a joint account and spent AUD$1.3 million (~$890,526 USD) on a luxurious five-bedroom home for her sister .

Now the company is fighting to get its money back with a lawsuit in the Victoria Supreme Court. As The Guardian noted, Crypto.com successfully frozen Manivel’s account in February. The court also ordered Manivel to sell the house and return the money (with interest) to the stock market. The case will return to court this October and Crypto.com declined to comment on the situation.

A crypto winter isn’t the only reason exchanges are losing money lately I think – blunders are also an obvious threat. Earlier this week, Solana-based decentralized exchange OptiFi vaporized $661,000 after a developer accidentally shut down the entire program powering the exchange with the fatal “close Solana program” command. Now, the exchange calls for an alert when using Command Prompt to avoid similar situations.