In a bizarre twist of fate, a Crypto.com user, after an accidental transfer of nearly $7 million, faces potential prison time. The incident, which has captured both legal and public attention, involves Australian couple Thevamanogari Manivel and Jatinder Singh. Due to a clerical error by a Crypto.com employee, the couple received 10.47 million Australian dollars ($6.86 million) in May 2021 instead of the intended 100 AU$ refund. This mistake occurred when an account number was mistakenly entered into the payment section of an Excel spreadsheet.
Before the error was discovered during an internal audit in December 2021, Singh had already significantly spent the funds, purchasing multiple homes and gifting 1 million AU$ to a friend, believing he had won an “online raffle.” This rapid spending has led to severe legal repercussions.
Arguments from the Prosecution and Defense
During a court hearing on August 2, Australian prosecutor Campbell Thomson made a compelling argument for incarceration, suggesting that the large sum involved surpassed a mere crime of opportunity. “It may not be that you send him to jail for very long at all after taking into account his presentence detention,” Thomson remarked, highlighting the gravity of the situation.
Conversely, Singh’s defense attorney, Martin Kozlowski, contended that Singh was overwhelmed by the unexpected windfall and did not fully comprehend the situation’s gravity initially. Kozlowski emphasized the delay in the company’s realization of the error, noting, “It must be taken into account the funds here came from a multinational that didn’t even know the funds were gone until an audit sometime later.”
Flight Risk Concerns and Sentencing
Prosecutors have also flagged Singh as a potential flight risk, citing that only $4.9 million of the transferred amount had been recovered, with some funds already moved abroad. Singh’s sentencing is scheduled for September. His partner, Manivel, has already faced legal consequences, receiving a roughly seven-month prison sentence (already served) in September 2023, and placed on an 18-month community corrections order after pleading guilty to recklessly handling the proceeds of crime.
Rise in Crypto-Related Crimes in Australia
This incident occurs against a backdrop of increasing criminal activities involving cryptocurrencies in Australia. According to a July 15 report by the Australian Transaction Reports and Analysis Centre (AUSTRAC), there is a growing concern over the misuse of cryptocurrencies for money laundering, attributed to the anonymity and speed of transactions that digital currencies offer.
| Date | Event | Outcome |
|---|---|---|
| May 2021 | Accidental transfer of 10.47 million AU$ | Initial transfer |
| December 2021 | Crypto.com discovers the error | Internal audit reveals the mistake |
| March 2023 | Concerns about Singh’s potential flight risk | Legal proceedings highlight risks |
| September 2023 | Manivel sentenced | Receives community corrections order |
| August 2024 | Court hearing for Singh | Prosecutor advocates for jail time |
The case of Singh and Manivel serves as a cautionary tale about the complexities and potential pitfalls of managing digital assets. It also highlights the broader implications for the cryptocurrency industry, emphasizing the need for stringent checks and balances to prevent similar errors in the future.
Featured image credit: rawpixel via Freepik
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