A crypto investor who mistakenly received over $10 million instead of a $100 deposit is now facing jail time after Crypto.com identified 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 failed. However, a local staff error resulted in Singh receiving $10.4 million during the refund process.

Believing it was a crypto lottery payout, Singh and Manivel withdrew some of the funds and spent millions on purchasing two properties in Melbourne and buying gifts. Crypto.com discovered the error seven months later and started recovery procedures with the Commonwealth Bank. Manivel claimed she thought it was a scam and transferred $4 million to an offshore account for safekeeping.

Authorities arrested her in March 2022 as she was about to board a flight to Malaysia, where the money had been 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. However, 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 stated it will attempt to recover funds spent by the duo in Australia.

This is not the first time Crypto.com has made such an error. 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. Additionally, in 2022, Crypto.com mistakenly sent $400 million to the wrong Ethereum wallet address. The resolution of this issue remains unclear.

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