Imagine waking up to find millions of dollars mysteriously deposited into your account. Sounds like a dream, right? But for one couple, this dream quickly turned into a nightmare. A massive blunder by the popular cryptocurrency exchange Crypto.com mistakenly transferred a staggering $10 million to their account instead of a mere $100 refund. What happened next is a cautionary tale of temptation, poor decisions, and the harsh realities of the law.
The Million-Dollar Mix-Up: How Did This Crypto.com Error Happen?
The story began in May 2021, when Jatinder Singh attempted to deposit $100 into his Crypto.com account. He used his partner, Thevamanogari Manivel’s, bank account for the transaction. Here’s where human error stepped in, big time.
An employee at Crypto.com, based in Bulgaria, processed the refund. Due to mismatched names on the accounts during the initial deposit rejection, instead of refunding $100, a whopping $10.47 million was mistakenly sent to Manivel. Yes, you read that right – million!
Months Pass, Millions Spent: The Undiscovered Error
Unbelievably, this colossal error went unnoticed by Crypto.com for seven long months! It wasn’t until December 2021, during a routine internal audit, that the exchange discovered the gaping hole in their accounts. By then, Singh and Manivel had already treated themselves to a lavish spending spree.
What did they spend it on? Let’s just say they didn’t hold back:
- Real Estate Bonanza: They purchased two houses and two blocks of land in Melbourne.
- Generous Gifts: A cool $1 million was gifted to a friend.
Singh initially claimed he believed they had won an online raffle. A rather convenient, and ultimately unbelievable, explanation.
The Law Catches Up: Arrest and Court Proceedings
Once Crypto.com finally realized the monumental mistake, they sprang into action. They contacted the Commonwealth Bank, who in turn informed Manivel about the erroneous transfer and the urgent need to return the funds.
However, Manivel, suspicious and perhaps already aware of the true nature of the windfall, transferred a substantial $4 million to a bank account in Malaysia. This action further complicated matters and signaled a clear intent to keep the money.
In March 2022, authorities intervened. Manivel was arrested at Melbourne airport as she attempted to board a one-way flight to Malaysia, carrying $11,000 in cash. Her escape plan was foiled.
Singh pleaded guilty to theft involving $6.09 million and faced the Victorian County Court. His defense lawyer argued that Singh didn’t fully grasp the gravity of the situation or realize the funds came from a major multinational company. They claimed he was unaware of the error until much later.
Despite the defense’s arguments, the prosecution pushed for jail time, emphasizing the opportunistic nature of the crime. The court had to decide: was this a simple misunderstanding or a calculated act of theft?
Manivel’s Legal Battles and Bail
Manivel faced serious charges including theft and ‘negligently dealing with the proceeds of crime.’ She pleaded not guilty. After spending over six months in custody, she was granted bail under strict conditions. These included:
- Surrendering her passport
- Restrictions on attending any points of departure (airports, ports etc.)
The Verdict and the Missing Millions
During the court proceedings, it was revealed that most of the money spent within Australia had been recovered. However, the $4 million spirited away to Malaysia remained outstanding. Crypto.com initiated legal proceedings to recover these funds, but the court apparently didn’t receive updates on the outcome of these recovery efforts.
Ultimately, Manivel was sentenced to 209 days in prison, which was deemed already served due to her time in custody. She also received an 18-month community corrections order. While she avoided further jail time, the ordeal certainly left a lasting impact.
What Can We Learn From This Crypto Calamity?
This bizarre case serves as a stark reminder of several key points:
- Honesty is Always the Best Policy: The core lesson is clear: dishonesty has serious consequences. Keeping money that isn’t yours, regardless of how it arrives in your account, is illegal and can lead to jail time.
- Verify Unexpected Windfalls: If you suddenly receive a large sum of money, especially from a financial institution or exchange, don’t assume it’s a gift or a lottery win. Investigate! Contact the sender immediately to clarify the situation.
- Legal Implications are Real: Spending money that doesn’t belong to you is theft, plain and simple. Ignorance is not a valid defense, especially in cases involving large sums and clear attempts to conceal or move the funds.
- Crypto Exchanges are Not Infallible: Even major platforms like Crypto.com can make significant errors. This case highlights the importance of robust internal controls and the potential for human error in the digital finance world.
Conclusion: A Costly Mistake for Everyone Involved
The Crypto.com error and the subsequent actions of Singh and Manivel created a costly mess for everyone involved. A simple $100 refund request snowballed into a $10 million loss for Crypto.com, legal battles, and jail time for the couple. This story underscores the critical need for both individuals and institutions to act with integrity and diligence in the fast-paced world of cryptocurrency. It’s a cautionary tale that resonates far beyond the crypto sphere, reminding us that when it comes to money – especially unexpected money – verification and honesty are paramount.
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