Couple Accidentally Received $10.5 Million from Crypto.com: A Case of Mistaken Identity
In an astonishing turn of events that seems almost cinematic, a couple in Australia mistakenly received an eye-watering $10.5 million from the popular cryptocurrency platform Crypto.com. What was initially intended as a mere $100 refund request spiraled into a legal saga that continues to unfold, capturing the attention of the cryptocurrency community and beyond.
The Initial Mistake
The incident traces back to May 2021 when Jatinder Singh made a modest deposit of $100 into the account of his then-partner, Thevamangari Manivel, on Crypto.com. Due to a clerical error by a company employee, who mistakenly entered the wrong account number into an Excel document, Crypto.com issued a refund totalling over $10.4 million instead of the intended $100. Both Singh and Manivel quickly transferred the funds to their bank accounts, acting before the company could reverse the transaction.
Crypto.com, a Singapore-based exchange offering cryptocurrency trading and payment services, realized the error during an audit approximately seven months later. When they attempted to reach out to the couple for the recovery of the funds, they faced radio silence.
Legal Proceedings and Complications
Following the mishap, Crypto.com swiftly initiated legal action in the Supreme Court of Victoria, Australia, in early 2022. The court approved a motion to freeze Manivel’s accounts, yet by this time, a significant portion of the money had already been moved to other accounts, which were subsequently frozen as well.
Through ongoing proceedings, it was revealed that around $1.35 million of the misplaced funds was used to purchase a four-bedroom home in Craigieburn, located in northern Melbourne. However, the situation became more complex when it was discovered that the property had been registered under the name of Manivel’s sister, who resides in Malaysia.
Criminal Charges and Sentencing
In a twist of fate, the Crypto.com employee responsible for the initial error—identified as a Bulgarian national—was sentenced to three years in prison for the broader misappropriation of funds. Singh, who made several transactions totaling over $6 million, faced scrutiny for spending the misallocated funds in various transactions over a span of ten months.
Media reports, including those from the Daily Mail, indicate Singh’s involvement in 160 transactions ranging from $5,000 to over $1 million. As the couple faced mounting legal consequences, their story continued to unfold in public discourse.
Implications for Crypto.com
This incident has had lasting effects not only for the couple involved but also for Crypto.com itself, which faced significant losses amidst a backdrop of financial struggles. In early 2022, the company experienced a massive security breach, losing over $30 million in cryptocurrencies including Bitcoin and Ethereum. In response to ongoing financial challenges and market downturns, Crypto.com announced in June 2022 it would be laying off 260 employees, although reports suggested even more layoffs had occurred without public communication.
The saga of the couple and the unexpected funds underscores the complexities and risks associated with the fast-evolving world of cryptocurrency—where human error can lead to life-altering consequences and the potential for lengthy legal battles.
Conclusion
As the legal proceedings continue, the story serves as a cautionary tale, highlighting issues related to digital finance, regulatory oversights, and the potential pitfalls of online transactions. The repercussions of this incident will likely influence both the couple’s future and Crypto.com’s operations moving forward.
