Jatinder Singh and his partner, Thevamanogari Manivel, are facing legal repercussions after a $6.8 million refund blunder by Crypto.com. The incident unfolded in May 2021 when Singh attempted to deposit $65 into his Crypto.com account. Due to a discrepancy between the account names, the deposit was rejected.
However, instead of simply refunding the amount, an employee at Crypto.com mistakenly processed a refund of $4.42 million to the wrong account—Singh’s partner’s account.
The mistake went unnoticed for seven months, during which Singh and Manivel spent a substantial portion of the windfall. They acquired two homes and two blocks of land in Melbourne and generously gifted $650,000 to a friend.
Singh even advised Manivel to withdraw the funds quickly, fearing the transaction might be reversed. Singh later claimed he believed the money was a raffle prize, showcasing a startling disconnect from the gravity of the situation.
In August 2022, a similar blunder saw a woman receive $10.5 million instead of $100, leading to a high-profile legal battle. Later that year, the exchange also sent $400 million worth of Ethereum to the wrong address, underscoring a pattern of significant operational mishaps.
The fallout from the refund error was severe. Manivel, who had transferred $2.6 million to her bank account after Crypto.com alerted her, was arrested while attempting to flee to Malaysia in March 2022. Singh recently pled guilty to theft of $4.42 million and awaits sentencing, while Manivel received a 209-day prison sentence, already served due to prior remand, along with an 18-month community corrections order.
This case highlights not only the vulnerabilities in cryptocurrency exchanges but also the legal consequences of mishandling such significant amounts of money. As Crypto.com deals with its repeated errors, Singh and Manivel’s case serves as a stark reminder of the intersection between financial mistakes and criminal accountability.
Also Read: India’s ED Hunts Down Leh Ladakh’s $876K Crypto Scam
