Crypto platform mistakenly sends woman $10 million instead of $100 refund. It didn't end well for her
By Sunayna Kanjilal,
2024-08-28
Crypto platform mistakenly sends woman $10 million instead of $100 refund. It didn't end well for her
Crypto.com, which hired Matt Damon as a frontman for its Super Bowl commercial last year, has accidentally sent $10m to an Australian woman, and now they want it back. The platform originally wanted to send a $100 refund to Thevamanogari Manivel in May 2021, but sent $10,474,143. According to New.com.au, the woman used the money to buy a mansion for her sister in Melbourne.
After more than seven months, the company realized the error during the company audit. "Extraordinarily, the plaintiffs allegedly did not realize this significant error until some seven months later, in late December 2021," James Elliot, the Victorian Supreme Court judge, wrote in a court ruling.
Recently, the company won a court ruling that ordered the defendants to repay every single dime and to cover the legal expenses incurred. This also included a 10 percent interest, valuing $27,369.64.
The platform which filed the court papers in February managed to freeze Manivel’s account and yet a majority of the money had already been dispersed to her sister and the five others named in the legal filing.
Manivel's sister had no choice but to sell the house while also being required to pay interest on the money taken. According to the reports, the platform couldn't reach Manivel and the others involved about the remaining funds.
Crypto.com made headlines when they released an ad starring Damon declaring "Fortune favors the brave." This ad was soon the subject of intense mockery after the crypto markets took a hit. Back in June, the company said that it would be sacking 260 of its employees due to the cryptocurrency market downturn, but the Verge reported the company had quietly laid off many more, and not told other staff.
This downturn comes after the AFL announced a five-year partnership with Crypto.com. "We are well financed, and these are multiyear contracts, which will continue to play a crucial role in our mission to accelerate the world’s transition to cryptocurrency," a spokesperson said, via The Guardian .
According to NOGLaw , the court is often reluctant to allow parties to recover if the overpayment especially if it's a result of willful ignorance and lack of due diligence. However, there are many ways in which the companies can get back the money in case of an overpayment. HCRLaw says that in case of "unjust enrichment," the court will help the company to claim their money and demand a return.
However, in case the company that has overpaid does not reach out to the court or the recipient in the coming six years, then there's a good chance that the person who has received the money may be able to keep it. This is why, companies need to invest in robust systems to check whether the payment and account details are correct while making payments. Another way in which companies can secure themselves is by investing in insurance.
Comments / 17
Add a Comment
GodbeGod1
08-29
I would have cleared my bank account out and go to a country where there's no extradition.
Chris
08-29
that was stupid on her end. someone dumps that much money in my account I do to my bank and tell them to freeze it, contact the person that sent it, and then see where the cards land. that much money has huge tax implications. if someone threw a bag of cash, bonds, or precious metals/gems at me it would require more thinking and a tax lawyer... probably other things... I definitely would not go "hey, I have 10+ million in my account! spend all the money!"
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.