Accidental $6.8m transfer lands Crypto.com user in prison

After a two-year trial, Jatinder Singh has been sentenced to three years in prison following a case in which Crypto.com accidentally sent him over $6.5 million.

In a high-profile case involving one of the world’s leading crypto exchanges, an Australian man has been sentenced to three years in prison for misappropriating funds mistakenly sent to him by Crypto.com. 

The incident, which unfolded in May 2021, saw Jatinder Singh, 39, receive AUD 10.5 million (approximately $6.8 million) instead of an intended $100 deposit.

The error occurred when Singh attempted to deposit $100 into his Crypto.com account using a bank account managed by his partner, Thevamanogari Manivel. Due to a discrepancy between the names on the exchange and the bank account, the deposit was initially rejected. 

However, a significant accounting mistake by a local staff member resulted in Singh receiving the multimillion-dollar sum during the refund process.

Believing the windfall to be a legitimate payout, Singh and Manivel quickly moved the funds to a joint account and embarked on a spending spree, purchasing two properties in Melbourne and buying luxury goods. They also transferred 4 million Australian dollars to an offshore account in Malaysia, allegedly for safekeeping.

Crypto.com discovered the error seven months later and initiated recovery procedures. Despite multiple attempts by the exchange and the Commonwealth Bank to contact the couple, they initially dismissed the outreach as a scam. In March 2022, authorities arrested Manivel as she was about to board a flight to Malaysia. Singh was apprehended shortly after.

Trial details 

During the trial, Singh’s attorney argued that his client had acknowledged the money was not his and requested leniency, citing Singh’s extended pre-sentencing incarceration. However, prosecutors pointed to Singh’s actions—particularly instructing Manivel to transfer the funds overseas—as evidence of criminal intent.

The presiding judge ultimately sentenced Singh to three years in prison, ruling that while Singh may not have been nefarious, his actions constituted theft. Manivel, on the other hand, was sentenced to an 18-month community corrections order.

Crypto.com has vowed to continue efforts to recover the funds spent by Singh and Manivel, who have now become cautionary tales in the ever-evolving world of cryptocurrency.