In May 2021, Crypto.com crypto exchange user Jatinder Singh attempted to make a deposit on the platform by depositing $100 from his girlfriend Tevamanogari Manivel's bank account. However, since the money was coming from a third party, the exchange rejected the transaction. As a result of employee error, $10.4 million was deposited into the account instead of the $100 refund.
Singh and Manivel, considering it a win in the cryptocurrency lottery, withdrew some of the funds and used them for personal needs, in particular, to buy real estate in Melbourne. The error was only discovered by Crypto.com seven months later, after which the exchange initiated a refund process through Commonwealth Bank.
Upon learning of the attempted refund, Manivel transferred the remaining funds, about $4 million, to an offshore account, explaining it was suspected fraud. In March 2022, Tevamanogari Manivel was arrested by authorities as she was about to fly to Malaysia. Jatinder Singh was also later detained and admitted to spending the money but denied criminal intent.
Singh is now awaiting sentencing, due at the end of August, while Manivel has been sentenced to 18 months of community service. Crypto.com is still trying to recover the money the couple spent.
Crypto.com has experienced similar mistakes before. In 2022, one user received $10.5 million instead of $100. That same year, the exchange transferred $400 million to the wrong address.
The exchange is actively working on eliminating such errors and recovering lost funds. Despite the incidents, Crypto.com continues to grow and implement security measures to prevent similar situations in the future.
