Man Admits to Theft After Crypto.com Refunded Him $6.8M Instead of $65

Jatinder Singh, 39, faces jail time after admitting to confiscating funds sent in error to him by Crypto.com. The transaction, which happened in May 2021, saw the exchange transfer $6.8 million (AUD 10.47 million) to the man and his wife, Thevamanogari Mavinel, after a failed on-chain account deposit.

Singh attempted to fund his Crypto.com account using his wife’s bank account but it failed to go through after the trading platform discovered a discrepancy in his account and the bank name from which he tried the deposit.

Employee Makes Blunder

Following the failed transaction, a Crypto.com employee attempted to send the funds back to Mavinel but made a costly blunder. The Bulgarian staff inputted the Singh wife’s account number into the amount to be refunded to the couple, transferring $6.8 million to them instead of $65 (AUD 100).

Upon receiving the fund, the couple attempted to siphon it instead of refunding it to the exchange. Singh allegedly told his partner to withdraw the money to avoid reversal, which they did.

The couple went on a spending spree, acquiring two houses and two plots of land in Melbourne, gifting a friend $650,000 (AUD 1 million), among other expenses. When asked during the trial, Singh claimed he thought the money was from a raffle won online.

The report showed that Crypto.com discovered the error during an international balance sheet audit seven months later. The trading platform then contacted Commonwealth Bank, an Australian-based bank Mavinel used to deposit Crypto.com.

When the bank contacted Mavinel, she claimed she thought it was a scam call and failed to comply. Instead, she transferred $2.6 million (AUD 4 million) to her Malaysian account. Mavinel was arrested on her way to board a one-way flight to the Asian country and sentenced to 209 days in prison, with an 18-month post-jail community correction order.

Singh Was No Criminal Mastermind: Judge.

“Singh was no criminal mastermind. Each found themselves in an extraordinary situation. It was the proverbial bag of gold falling from the sky, it’s a situation where many might ruminate about what they might do,” Judge Marich said on Friday.

Singh’s defendant pleaded that the court consider the one year his client has already spent in jail awaiting trial and grant his bail. However, the defendant called for a long sentence, stating that his offense was “out of range.”

Crypto.com has officially attempted to recover the funds but has not reported progress. However, reports show they are making considerable progress. The court would sentence Singh later in August.