Couple Faces Court After Spending Almost $7M from Crypto Refund Mistake

Errors in crypto refund transactions are not uncommon, as highlighted by a recent case involving an Australian couple.

A crypto exchange mistakenly refunded 100 Australian dollars to Manivel, but due to a data entry error, the amount transferred was actually 10.5 million Australian dollars (about 6.7 million US dollars). Instead of alerting the exchange to the mistake, the couple chose to spend the funds lavishly, purchasing multiple properties and cars, and even transferring some of the money overseas.

Their spending spree included buying four homes, such as a five-bedroom house in Craigieburn worth 1.35 million Australian dollars, and moving approximately 4 million Australian dollars to a bank account in Malaysia.

Once the mistake was identified, the crypto company sought legal action to reclaim the funds. The Supreme Court of Victoria has since ordered the sale of the properties bought with the misallocated money.

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Manivel has admitted to recklessly handling the funds and received an 18-month community service sentence, including six months of unpaid work. Singh, the other party involved, is still awaiting trial on theft charges.

This incident underscores the critical need for vigilance and honesty in the crypto industry. Errors can occur, but mishandling them can lead to serious legal consequences. Crypto users should promptly report any discrepancies to prevent issues similar to those faced by the former Binance CEO, who recently served a four-month prison sentence.

Alexander Stefanov