Crypto.com Sent User $6.6M Due to Excel Bungle, Court Hears

A Crypto.com user who mistakenly received a refund worth millions of dollars has claimed they thought the funds were a competition prize

article-image

Crypto.com Arena, another sports sponsorship struck by the digital asset exchange | Source: Shutterstock

share

key takeaways

  • Crypto.com says human error resulted in a user being sent millions of dollars instead of less than $100
  • The user has pleaded not guilty to dealing with proceeds of crime and theft from her local bank over the incident

Crypto.com has blamed mistakenly sending millions of dollars in digital assets to an Australian user on manual processes and an Excel spreadsheet.

An Australian court has heard how a Crypto.com employee located in Bulgaria had entered incorrect numbers into the spreadsheet, according to local news report, which ultimately resulted in the user receiving $6.6 million (10.5 million Australian dollars) instead of $64.

Melburnian Thevamanogari Manivel received the funds in May 2021. Manivel allegedly later spent the money to buy art, furniture and four luxury homes, including a multi-million dollar mansion in Cragieburn. She’s also said to have sent millions of dollars to Malaysian bank accounts.

The Singapore-headquartered exchange took the matter to the Victorian supreme court this year and was granted a freeze on Manivel’s assets in February after failing to notice the missing millions until seven months later, following an end-of-year audit.

Crypto.com compliance officer Michi Chan Fores told the Melbourne Magistrates Court on Tuesday the first part of the refund process had been due to a human error relating to records kept in Excel.

An Australian payment provider for Crypto.com picked up the refund request, transferring the millions into Manivel’s local bank account. 

Interestingly, Manivel may have received the funds because her partner had used her bank card to make crypto purchases through his own Crypto.com account, according to reports.

Crypto.com user granted bail after spending six months in jail

Manivel was arrested at the Melbourne airport in March while allegedly attempting to head back to Malaysia with about $6,800 (11,000 Australian dollars) in cash.

Appearing in court by video link from jail on Tuesday, Manivel and Singh said they believed they had won the funds via a competition.

Manivel had reportedly been in custody for six months following her arrest but has now been granted $6,300 bail on strict conditions; She must surrender her passport and stay away from any points of departure.

Fores denied the exchange had undertaken any such competition and no customer had received notifications relating to the alleged competition.

Most of the funds have been returned, with $1.9 million outstanding. A civil action has frozen the remaining funds and moved to retrieve gifted cash from Manivel’s relatives.

Manivel has pleaded not guilty to three charges, including dealing with proceeds of crime and theft from her local bank for withdrawing the money. The pair are now reportedly awaiting a directions hearing scheduled for November 8.

Taking Crypto.com’s story as fact, this wouldn’t be the first time a prominent crypto company has mistakenly sent outsized payments to users. 

Last year, staff at crypto lender BlockFi accidentally distributed promotional payouts in bitcoin instead of dollar-pegged stablecoin GUSD, with some users receiving millions of dollars in crypto rather than hundreds.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million