Court case

Crypto user pleads guilty after spending $10m deposit error

Published

5 months ago

August 2, 2024

A crypto investor who received over $10 million instead of a $100 deposit is facing jail time after Crypto.com discovered 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 bounced. However, a mistake by a local staffer resulted in Singh receiving $10.4 million during the refund process.

Believing it to be a crypto lottery payout, Singh and Manivel withdrew some of the funds. They spent millions purchasing two properties in Melbourne and buying gifts.

Crypto.com discovered the error seven months later and initiated recovery procedures with the Commonwealth Bank. Manivel claimed she thought it was a scam and transferred $4 million to an offshore account for safekeeping.the error seven months later and initiated a recovery with Commonwealth Bank.

Authorities arrested her in March 2022 as she was about to board a flight to Malaysia, where the money was 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.

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 said it will attempt to recover funds splurged by the duo in Australia.

Crypto.com has made this error at least twice before. 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.

Also, in 2022, crypto.com sent $400 million to the wrong Ethereum (ETH) wallet address. It’s unclear how the platform resolved the issue.

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Court case

Man accused of fraud flees after skipping $150m hearing

Published

3 months ago

October 12, 2024

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A German man, Horst Jicha, is now a fugitive after skipping a $150 million cryptocurrency fraud hearing in New York.

Jicha, 64, was under house arrest and out on a $5 million bond, but authorities suspect he tampered with his ankle monitor and disappeared earlier this month, according to CNBC.

His trial was scheduled for March 31, where he faced multiple charges related to overseeing a crypto scheme that defrauded investors through USI Tech, a multi-level marketing platform.

Jicha’s case revolves around USI Tech, a platform that claimed to offer cryptocurrency investments with guaranteed high returns. According to prosecutors, USI Tech was a pyramid scheme disguised as a legitimate crypto investment operation.

Jicha: 140% returns in 140 days

Investors were told they could earn 140% returns in 140 days through bitcoin mining, trading, and referring others to invest, according to CNBC. In reality, the platform collapsed, leaving investors with losses while Jicha allegedly pocketed millions.

USI Tech ceased operations in the U.S. in early 2018 after regulators began investigating the company. The scam reportedly left investors unable to withdraw funds, with much of the stolen money held in ether and bitcoin addresses controlled by Jicha.

After fleeing, CNBC reports that Jicha’s $5 million bond, guaranteed by his partner, children, and associates in Germany, has been forfeited.

Prosecutors are actively working to locate Jicha, but as of now, his whereabouts remain unknown. Jicha had lived in various countries, including Brazil and Spain, before being arrested in Florida last year. He was released on bond in January 2024, with strict conditions limiting his movements, but now faces an uncertain fate as authorities continue their search.

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