According to local news outlet 7News, two Melbourne women, Manivel Thevamanogari and her sister Gangadory Thevamanogari, received an AUD$10.5 million deposit from Singaporean crypto exchange Crypto.com after the latter made an error in issuing an AUD$100 refund. Instead of the refund amount, an employee allegedly typed an account number in the payment section, resulting in an erroneous transfer to their bank account.
The incident occurred back in May 2021, but was not discovered until an annual audit in December 2021. After filing a lawsuit, the Victoria Supreme Court recently ruled that the funds must be returned to the company. However, it turns out that Manivel has already spent AUD$1.35 million worth of the funds on a five-bedroom luxury home in Craigieburn. She was ordered to sell the property and return the remaining funds or face potential contempt of court charges. The case will return to court in October.
Regarding the case, Justin Lawrence from Henderson and Ball Lawyers said:
"There's no doubt that if you saw that in your account, you would know it shouldn't be there, and the onus is actually on you to call the sender and say, look, that shouldn't have come into my account."
Unlike crypto transactions, which are final and irreversible, it is possible for centralized financial institutions to reverse erroneous transactions. However, given the time it took to discover the error and that the funds from Crypto.com were transferred out of the original account post-receipt, a simple transaction reversal would have been impossible in this instance.
Reddit co-founder Alexis Ohanian’s venture capital (VC) firm Seven Seven Six (776) is looking to raise a crypto investment fund worth $177.6 million, while current and former executives from Galaxy Digital and Genesis are raising a $500 million fund of their own.
776’s crypto play
According to an Aug. 29 report from The Information, 776’s fund “Kryptos” will launch in October to capitalize on the current bear market. It emphasized there are currently some bargain bin token discounts on the market that are ripe for the taking.
“This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale,” said Katelin Holloway, Founding Partner at Seven Seven Six.
The firm registered with the Securities and Exchange Commission (SEC) to become an investment advisor in April, enabling the firm to invest in crypto and manage crypto investment funds.
While 776 has invested in a host of crypto/blockchain projects, it will be the VC firm’s first fund that is solely focused on crypto assets. It will charge investors a relatively hefty management fee of 2.5% and offer a universal profit-sharing plan of 25%.
According to 776’s website, its investment portfolio has exposure to Bored Ape Yacht Club creators Yuga Labs, the Doodles NFT project, Web3 fantasy franchise the Forgotten Runes Wizard’s Cult, and blockchain API and node infrastructure startup, QuickNode to name a few.
Galaxy and Genesis
According to an Aug. 26 Form D filing with the SEC, a $500 million fund headed up by current and former Galaxy and Genesis execs is called the DBA Crypto Fund I, LP.
Details on the fund are sparse at this stage, other than the group indicating that it will be a pooled investment fund and private equity fund.
In terms of securities offered, the only indications so far are “pooled investment fund “interests” and “other.”
The group of execs behind the fund consists of Galaxy Digital’s vice-president of investments Michael Jordan, Genesis’s head of derivatives Joshua Lim and former Genesis vice president of trading Roshun Patel. Alongside them, the CEO and founder of trading firm Convex Optimization Group, Shane Barratt rounds off the list of the managing members.
These crypto funds are not the only ones with big names behind them grabbing headlines over the past week, with Cointelegraph reporting on Aug. 25 that Polygon founder Sandeep Nailwal had raised $50 million for a new startup fund dedicated to Web3 firms.
A week prior to that, CoinFund also launched a $300 million early stage Web3 venture fund to invest in crypto and other blockchain sub-sectors.
For nearly a year now, a mysterious Axie Infinity wallet has been quietly amassing billions of Smooth Love Potion (SLP), the in-game cryptocurrency powering one of the industry’s most popular play-to-earn (P2E) crypto games.
Today, the anonymous whale wallet now holds a little over 22 billion SLP — more than 50% the total circulating supply of the token.
The problem? No one knows who it belongs to and what their intentions are.
The wallet in question was brought to Cointelegraph’s attention by Axie Infinity player and tech co-founder Michael Benko, who first caught wind of this mysterious wallet on Aug. 25.
Should we be worried?
Benko told Cointelegraph he became concerned about the wallet given the amount of SLP it had gathered in a relatively short amount of time, which could potentially wreak havoc on the game’s ecosystem.
“The significance of a wallet holding so much SLP, if it's an individual person, gives that person a huge amount of control over an economy, especially in an economy where it’s so hard to mint a token.”
Launched in 2021, Axie Infinity is a blockchain-based game in which players purchase NFTs of cartoon creatures which they breed and fight against other players in turn-based gameplay.
SLP is earned by players for completing daily quests, battling other players in the “Arena” mode or playing against AI in the “Adventure” mode. The SLP can be used for breeding Axies, crafting in-game runes and charms (power-ups), and can be sold on exchanges.
Benko noted that as per the latest season update, an average Axie Infinity player can generate between 10 to 70 SLP per day, depending on how good they are at the game.
“So it is a concern, if someone's sitting there with 22 billion SLP [...] they could really keep the price flat or keep the price down when it actually should, by natural market conditions, be going up.”
The cryptocurrency is currently priced at $0.004, down 99% from an all time high of $0.40 on Jul. 13, 2021, according to Coingecko.
This Daily Dose was brought to you by Cointelegraph.