An Australian man whose partner was accidentally refunded millions of dollars by Crypto.com has been jailed after embarking on a "flurry" of spending.
Jatinder Singh, 39, has been sentenced to serve three years in jail by the County Court of Victoria after pleading guilty to the theft of $4.4 million, per reports in local news media.
In May 2021, Singh tried to deposit AU$100 ($65) into his Crypto.com account back in May 2021 using the bank account of his partner Thevamanogari Manivel, 41.
The crypto exchange rejected the deposit owing to the name discrepancy between the exchange and bank account, but a "significant accounting mistake" saw a staff member accidentally typed Manivel's account number into the spreadsheet field for the value of the refund—resulting in her being sent AU$10.47 million (around $6.8 million).
Man Pleads Guilty to Theft After Crypto.com Refunded His Partner $6 Million Instead of $65
Centralized exchange Crypto.com accidentally refunded a woman $6.8 million (approximately $10.47 million Australian dollars) instead of $65. She and her partner then withdrew and spent the money. Now, three years later, he pled guilty alongside his partner for theft of $4.42 million, as reported by NewsWire. Jatinder Singh tried to deposit $65 into his Crypto.com account back in May 2021 using his partner’s bank account. Due to the name discrepancy between the exchange and bank account, Crypto.c...
Singh then had Manivel transfer the funds to the couple's joint account in a bid to avoid the transaction being reversed, after which they embarked on a "flurry" of spending during which Manivel transferred AU$4 million to her bank account in Malaysia.
An internal audit uncovered the error seven months later, by which time Singh and Manivel had already spent much of the money on purchases including luxury goods, homes, land in Melbourne, Australia, and a AU$1 million gift to a friend.
Man Pleads Guilty to Theft After Crypto.com Refunded His Partner $6 Million Instead of $65
Centralized exchange Crypto.com accidentally refunded a woman $6.8 million (approximately $10.47 million Australian dollars) instead of $65. She and her partner then withdrew and spent the money. Now, three years later, he pled guilty alongside his partner for theft of $4.42 million, as reported by NewsWire. Jatinder Singh tried to deposit $65 into his Crypto.com account back in May 2021 using his partner’s bank account. Due to the name discrepancy between the exchange and bank account, Crypto.c...
Crypto.com and Commonwealth Bank repeatedly attempted to contact the couple, who later claimed that they thought the exchange's efforts at outreach were scam attempts.
Manivel was arrested attempting to board a one-way flight to Malaysia in March 2022, while Singh was arrested later that month, claiming he "honestly believed" that he had won the money in an online raffle.
"At least reckless"
In sentencing, Judge Martine Marich described Singh's actions as "at least reckless," adding that his actions were "precipitated by the most extraordinary of circumstances."
Singh was sentenced to three years in jail, with 361 days of presentence detention recognized as time served, and will be eligible for parole after serving two years.
Crypto.com Accidentally Sent $400M in Ethereum to Wrong Address, CEO Calls Concerns ‘FUD’
After the shocking collapse of FTX, other centralized crypto exchanges are under the microscope, and Crypto.com customers are concerned after CEO Kris Marszalek acknowledged that his exchange accidentally sent 320,000 ETH, around $400 million at the time, to a public address registered at a competitor exchange. Blockchain records on Etherscan show that on October 21, Crypto.com sent the sum, around 80% of its total ETH reserves, to rival exchange Gate.io—just before Gate.io provided “proof of r...
Manivel was previously sentenced to 209 days in prison, but the court considered her sentence already served following almost a year on remand. She was also placed on an 18-month community corrections order last year after pleading guilty to recklessly dealing with the proceeds of a crime.
Edited by Stacy Elliott.
