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

As a seasoned researcher with a background in financial crimes and digital currencies, this case has left an indelible mark on my professional journey. The tale of Jatinder Singh and Crypto.com is not just another instance of funds mismanagement; it’s a poignant reminder of the intricate dance between technology and human nature.


Following a two-year long court case, Jatinder Singh received a sentence of three years imprisonment, stemming from an incident where Crypto.com mistakenly transferred him approximately $6.5 million.

In a significant legal matter concerning a globally recognized cryptocurrency exchange, Crypto.com, an Australian resident was ordered to spend three years behind bars due to his actions of wrongfully using resources that were erroneously transferred to him by the platform.

In May 2021, a mix-up occurred where Jatinder Singh, aged 39, was mistakenly given a whopping AUD 10.5 million ($6.8 million), instead of the 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. 

A man named Jatinder Singh, who received an overpayment of approximately $6 million instead of a refund for a $100 deposit on a cryptocurrency site, has been sentenced to three years in prison.

— Wonderland (@wonderland2030) August 13, 2024

Nevertheless, an important error made by a local employee during the refund procedure led to Singh unintentionally receiving a large sum of multiple millions of dollars.

After considering the winnings as a valid prize, Singh and Manivel swiftly shifted the earnings into a shared bank account and promptly began a shopping extravaganza. They acquired two real estate properties in Melbourne and splurged on high-end merchandise. Furthermore, they transferred AUD 4 million to an overseas account in Malaysia, claiming it was for safekeeping purposes. These actions, however, have raised suspicions.

Seven months after the error occurred, Crypto.com identified it and initiated recovery measures. However, despite numerous attempts by the exchange and the Commonwealth Bank to reach out to the couple, they initially disregarded these contacts as potential scams. In March of 2022, authorities made arrests: Manivel was apprehended at the airport before she could board a flight to Malaysia, followed swiftly by Singh’s capture.

Trial details 

At the court hearing, Singh’s lawyer defended him by saying that my client admitted the money wasn’t his and asked for leniency, considering Singh had already spent a long time in jail before sentencing. Yet, the prosecution emphasized Singh’s actions, such as ordering Manivel to move the funds abroad, as proof of his criminal intentions.

In the end, Judge Primarily found Singh guilty of a three-year imprisonment term, stating that although Singh might not be malicious, his behaviors qualified as stealing. Conversely, Manivel received a 18-month correctional supervision in the community instead of prison time.

Crypto.com has pledged to persist in their attempts to retrieve the cryptocurrency funds mistakenly spent by Singh and Manivel, serving as reminders of the importance of vigilance in the rapidly changing realm of digital currencies.

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2024-08-13 18:11