Crypto.com lost millions of dollars due to a typing error in 2021. As we often hear about in digital currency ecosystems, there are times when users make mistakes that cause them to lose some or all of the all of their funds. However, exchanges also sometimes make significant mistakes that can cost them dearly.
She gets $7 million and buys a mansion
This is the case of Crypto.com which accidentally sent a user of the platform $7.2 million instead of the $70 refund claimed in mid-2021. Crypto.com tried to recover the funds, but it was already too late. From now on, the user must return the money to the exchange since the court intervened and ordered the return of the funds.
Two sisters named Manivel Thevamanogari and Gangadory Thevamanogari live in Melbourne, Australia. They were involved in an accidental cryptocurrency exchange that left them with a fortune of 10.5 million Australian dollars, or 7.2 million US dollars. Initially, they had asked for a refund of 70 dollars.
An employee of the stock exchange indicated the wrong account number during a transaction. The employee was supposed to enter the amount in Australian dollars in the section provided; instead, he entered a different account number. It was an audit in December 2021 that revealed the error when this transaction had taken place in May!
The money therefore belonged to Crypto.com despite this error, but the two sisters did not inform the platform. Instead, the money was transferred to a joint account shared by the recipient and her sister. At the time, the recipient said she was surprised but delighted with this turn of events.
With this newfound fortune, the beneficiary bought a luxurious five-bedroom house in the town of Craigieburn for £1.33million before passing title to her sister.
As soon as they realized the error, Crypto.com filed a lawsuit against the user and her sister who had therefore received $10.5 million in error. During their trial, the platform asked the Supreme Court for a full refund of the funds as well as 10% interest.
Judge James Dudley Elliott ordered the two sisters to immediately sell the mansion and issue a full refund of funds to the Crypto.com platform.
Conversely, he pays $36,000 in fees for a transaction
To use the decentralized exchange Uniswap, someone just paid $36,000 in Ether. The exchange confirmed a few days ago that a user had just paid nearly 25 ETH to interact with the platform.
Compared to a regular transaction, using the smart contract costs $10-$20 in addition to permission to interact with their wallet. Alternatively, it may be seen as an additional charge for the user to access their wallet.
Due to a probable careless error, the user traded 27,800 USDC for 19.5 ETH after the smart contract was approved. However, it only costs the user $155 in fees, which is considered cheap compared to other exchanges. Considering the user’s error, he spent $63,800 to acquire his ETH. This translates to nearly $3,300 per ETH.
According to Andrew Redden, co-founder of Groundhog Network, this transaction is the most expensive smart contract authorization ever.