A couple who received $10 Million by mistake from Crypto.com crypto exchange and kept it to themselves to serve jail time.
Dishonesty brings consequences. A couple proved this phrase when they received money by mistake and kept it to themselves. Their action led them to serve jail time. A major error from Crypto.com crypto exchange resulted in refunding $10 Million instead of $100.
The incident began in May 2021 when Jatinder Singh tried to deposit $100 into his Crypto.com account using his partner’s bank account. An employee of the exchange in Bulgaria made a significant mistake, leading to a $10.47 million refund to Singh’s partner, Thevamanogari Manivel, due to discrepancies between the names on the accounts causing the initial deposit rejection.
Crypto.com Discovered The Mistake
The mistake was undiscovered until December 2021. During an internal audit by the exchange, the company noticed a large amount of money was missing. By this time, Singh and Manivel had already spent a significant portion of the money. They bought two homes, two blocks of land in Melbourne, and even gifted $1 million to a friend. Singh initially claimed he believed they had won an online raffle.
Actions Taken and Arrests
Crypto.com realized the mistake and contacted the Commonwealth Bank, which informed Manivel that she needed to return the money. Manivel, believing it was a scam, transferred $4 million to her Malaysian bank account. In March 2022, police arrested her at Melbourne airport while she tried to board a one-way flight to Malaysia with $11,000 in cash.
Court Proceedings
Singh pleaded guilty to the theft of $6.09 million and appeared in the Victorian County Court for a presentence hearing. His lawyer argued that Singh did not fully understand the seriousness of his actions at the time. He remained unaware that the funds came from a multinational company, which did not realize the money was missing until much later.
Despite this, the prosecution called for a jail sentence. They emphasized the opportunistic nature of the crime.
Manivel’s Charges and Bail
Manivel faced charges including theft and negligently dealing with the proceeds of crime. He pleaded not guilty, and the court granted her bail with strict conditions after she spent over six months in custody. Her bail conditions included surrendering her passport and not attending any points of departure.
Sentencing and Recovery Efforts
The court learned that most of the money spent in Australia had been recovered, but the $4 million transferred to Malaysia still remained outstanding. Crypto.com had launched legal action to recover the funds. The prosecutors did not receive information about the outcome of the recovery action. The court sentenced Manivel to 209 days in prison, recognizing this time as already served. She also received an 18-month community corrections order.
Conclusion
The case highlights the significant consequences of a very simple mistake. Singh and Manivel’s situation serves as a cautionary story. It underscores the importance of verifying unexpected gains. People should understand the legal implications of spending money that doesn’t belong to them.
Source: https://bitcoinworld.co.in/couple-who-spent-10-million-received-by-mistake-due-to-crypto-com-error-faces-jail-time/
