Crypto Error worth $6.8M Leads to 3-Year Sentence for Australian Man

The incident began in May 2021, when Singh attempted to deposit $100 into his Crypto.com account, a transaction that should have been straightforward. However, the process took an unexpected twist due to a discrepancy between the name on Singh’s Crypto.com account and the bank account managed by his partner, Thevamanogari Manivel. This mismatch caused the deposit to be rejected.

What happened next was nothing short of astonishing. Instead of simply returning the $100, a local staff member at Crypto.com made a significant error, transferring AUD 10.5 million—equivalent to about $6.8 million—into Singh’s account. The substantial sum, which was intended to be a refund, was far beyond what anyone could have anticipated.

Rapid Spending of the Unexpected Windfall

Believing the unexpected windfall to be legitimate, Singh and Manivel did not hesitate to use the funds. They quickly transferred the money to a joint account and embarked on a spending spree that included purchasing two properties in Melbourne and acquiring luxury goods. Additionally, they moved AUD 4 million to an offshore account in Malaysia, presumably as a precaution.

Crypto.com eventually realised the mistake, but it took seven months before the error was detected. By then, much of the money had been spent or moved. The company, together with the Commonwealth Bank, made repeated attempts to contact Singh and Manivel, but their efforts were initially dismissed by the couple, who assumed the communications were part of a scam.

Legal Consequences and Sentencing

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The authorities intervened in March 2022, leading to the arrests of both Singh and Manivel. Manivel was detained at the airport as she prepared to leave for Malaysia, while Singh was apprehended shortly after that. The following legal proceedings culminated in Singh’s trial, where his actions were closely scrutinised.

Singh’s lawyer argued in court that his client had acknowledged that the money did not belong to him and appealed for leniency, citing Singh’s extended pre-sentencing detention as a mitigating factor. However, prosecutors highlighted the fact that Singh had instructed the transfer of a substantial portion of the funds to an offshore account as evidence of his intent to commit a crime.

The presiding judge had to weigh both sides of the argument carefully. Although it was acknowledged that Singh may not have acted out of deliberate malice, the court ultimately ruled that his actions constituted theft. Consequently, Singh was sentenced to three years in prison, reflecting the seriousness of the offence, despite the unintentional nature of the initial error. Manivel received an 18-month community corrections order, recognising her involvement but also taking into account her relatively lesser role in the case.

Implications in the Digital Age

This case serves as a stark reminder of the potential consequences of errors in the rapidly evolving world of digital finance. Crypto.com has indicated that it will continue to pursue the recovery of the funds mistakenly transferred to Singh and Manivel.

The case also underscores the importance of making ethical decisions when faced with unexpected financial opportunities. While the temptation to use such a windfall can be strong, maintaining integrity is crucial. For Singh, the cost of not doing so was a three-year prison sentence—a heavy price for a mistake that began with a simple banking error.

In the end, Singh’s situation is more than just a story about a financial mix-up; it is a cautionary tale about the choices individuals make in the face of unforeseen circumstances. The case highlights the broader implications of digital transactions and the critical need for vigilance, honesty, and ethical conduct in today’s financial landscape.