Jatinder Singh, the Crypto.com customer who received AU$10.47 million by mistake in 2021, was initially granted bail while facing charges over the money. The case has since reached a very different conclusion. Singh pleaded guilty to theft and was sentenced to three years in prison by the County Court of Victoria in August 2024.
The incident began when Singh attempted to deposit AU$100 into his Crypto.com account using the bank account of his partner, Thevamanogari Manivel. Because the names did not match, the deposit was rejected and a refund was supposed to be processed. Instead, a significant accounting error resulted in AU$10.47 million being transferred to Manivel’s account.
At the time of Singh’s bail hearing, prosecutors argued that he presented a flight risk because money remained unrecovered and some funds had reportedly been transferred to Malaysia. A court ultimately imposed conditions including the surrender of his Indian passport rather than keeping him in custody.
Accidental $10.5M Crypto Windfall Leads to Legal Battle
Melbourne couple Thevamanogari Manivel and Jatinder Singh were living the dream when a jaw-dropping $10.5 million AU$ ($6.7 million USD) landed in their account, thanks to a colossal mistake by Crypto(dot)com. But hold your horses—this dream quickly turned into a legal nightmare.
Discovered only during an annual audit in December 2021, the couple had already gone on what can only be described as a “millionaire’s shopping spree.” Four houses? Check. Luxury vehicles? Check. Transferring a cool 4 million AU$ to a Malaysian bank? Double check.
One of their extravagant purchases included a lavish five-bedroom property in Craigieburn, worth 1.35 million AU$.
Manivel, who recently pleaded guilty to “recklessly dealing with the proceeds of crime,” has been slapped with an 18-month community corrections order, complete with six months of unpaid community work. She’s already clocked 209 days in the slammer. As for Singh, he’s gearing up for a plea trial set for October 23.
This sensational case isn’t just a legal circus; it’s a glaring spotlight on the security loopholes and ethical dilemmas in the world of cryptocurrency. Buckle up, because this story is far from over!
Should they have returned the funds?
— Crypto Town Hall (@Crypto_TownHall) September 24, 2023
How the Crypto.com Error Became a Criminal Caseerror became a criminal case
The mistaken payment was not discovered immediately. Crypto.com identified the error during an internal audit in December 2021, roughly seven months after the transfer. By then, the couple had moved and spent substantial amounts of the money.
Court evidence showed that the funds were used to purchase property, vehicles, luxury goods and other items. About AU$4 million was also transferred to an account in Malaysia. Manivel was arrested at Melbourne Airport in March 2022 while attempting to travel to Malaysia on a one-way ticket.
The original case also included a claim that Singh believed the money was a prize or contest win. He and Manivel initially pleaded not guilty, but the case changed substantially before sentencing.
Also Read: Silvergate Bank’s Exit: A Turning Point for Crypto Banking?
Singh Was Later Sentenced to Three Yearswas later sentenced to three years
The most important development since the original report is Singh’s August 2024 sentencing. He pleaded guilty to theft of about AU$4.4 million and received a three-year prison sentence. The court recognized 361 days he had already spent in custody, making him eligible for parole after serving two years.
Manivel’s case had already been resolved separately. She pleaded guilty to recklessly dealing with the proceeds of crime and received a sentence that included time already served and an 18-month community corrections order.
The case illustrates the consequences of operational errors at financial platforms, but it also shows that receiving money by mistake does not necessarily settle the question of what happens next. Once the recipients began moving and spending the funds, the dispute shifted from an exchange’s accounting failure to a criminal case over the handling of money they did not have a legitimate claim to.
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