In May 2021, Crypto.com accidentally transferred a whopping $10.5 million to a Melbourne woman, who sought a mere $100 refund. Thevamanogari Manivel did not report the mishap and went on to spend and transfer the money. The exchange had no clue about its mistake for a period of seven months. Only during its audit before Christmas, it went on to realize that it was short of $10 million. Subsequently, on the 7th of February, the firm went on to issue freezing orders against the woman’s bank account.
Read More – Crypto.com’s Lawsuit against Thevamanogari Manivel: Explaining a $10.5 million dollar mistake
Now, in what is the latest development, Thevamanogari Manivel and her partner Jatinder Singh virtually appeared in the Melbourne Magistrates Court on Tuesday, for their trial over theft and other charges.
Per a local media news report, Crypto.com Compliance Officer—Michi Chan Fores—said,
“A worker in Bulgaria, who processed the refund, had entered the wrong numbers into an Excel spreadsheet. It was a manual process and the records were being kept in Excel.“
Once the refund payment request was processed, it was sent to Crypto.com’s payment provider in Australia. The provider then transferred the money into Manivel’s Commonwealth Bank of Australia account. The account, notably, was in Singh’s name, but the transfer may have been sent to Manivel’s account because he was using her bank card to buy crypto, according to the court.
As a matter of fact, Manivel was arrested at Melbourne Airport on another charge in March while allegedly attempting to head back home to Malaysia with about $11,000 AUD in cash.
Contentions made by parties in the Crypto.com case
In their virtual court appearance, the couple said that they thought they won the funds via a competition. The exchange’s compliance officer, however, said that there was no such competition and Crypto.com did not send out push notifications to users about any competition winnings.
Victoria Police Senior Constable Conor Healy told the court,
“The money was used to buy four houses, $4 million was transferred to a Malaysian bank account and the rest bought vehicles, art, and furniture. A majority has since been paid back but about $3 million remains outstanding, he said, with civil action underway to freeze the property and get money back from relatives who were given gifts.“
Victoria Police Senior Constable Conor Healy
Per the local media report, Manivel pleaded not guilty to three charges. These include dealing with proceeds of crime and theft from Commonwealth Bank for withdrawing the money. Singh, on the other hand, pleaded not guilty to two charges. Those charges include theft for withdrawing the Crypto.com money from the bank.
Magistrate Peter Reardon granted Manivel bail on conditions. Per the same, she must surrender her passport and cannot attend any points of departure. The couple will face directions hearing in the County Court on the 8th of November.