Crypto user pleads guilty after spending $10m deposit error

A crypto investor who received over $10 million instead of a $100 deposit is facing jail time after Crypto.com discovered the error.

In May 2021, Crypto.com user Jatinder Singh attempted to deposit $100 into his exchange account using a bank account managed by his partner, Thevamanogari Manivel. Due to conflicting names on the deposit form, the transaction bounced. However, a mistake by a local staffer resulted in Singh receiving $10.4 million during the refund process.

Believing it to be a crypto lottery payout, Singh and Manivel withdrew some of the funds. They spent millions purchasing two properties in Melbourne and buying gifts.

Crypto.com discovered the error seven months later and initiated recovery procedures with the Commonwealth Bank. Manivel claimed she thought it was a scam and transferred $4 million to an offshore account for safekeeping.the error seven months later and initiated a recovery with Commonwealth Bank.

Authorities arrested her in March 2022 as she was about to board a flight to Malaysia, where the money was sent.

Singh’s attorney, Martin Kozlowski, stated that his client acknowledged the money wasn’t his and asked the court to consider Singh’s months-long incarceration during sentencing. Australian prosecutor Campbell Thomson argued that Singh’s instruction to Manivel suggested criminal intent.

The presiding judge disagreed, and said Singh was not a nefarious actor. Singh’s sentencing was scheduled for later this month. Manivel will serve an 18-month community corrections order. Crypto.com said it will attempt to recover funds splurged by the duo in Australia. 

Crypto.com has made this error at least twice before. In 2022, a user received $10.5 million instead of $100 before spending some of the money with her sister. The crypto exchange sued both and arraigned them before a Melbourne court shortly after.

Also, in 2022, crypto.com sent $400 million to the wrong Ethereum (ETH) wallet address. It’s unclear how the platform resolved the issue.