- An Australian has admitted to stealing an accidental AU$6 million (US$10 million) refund from Crypto.com
- Jatinder Singh spent millions belonging to the exchange after an employee error landed him with the cash
- Singh used the money on property and land before the error was discovered seven months later
An Australian who held onto an accidental AU$6 million (US$10 million) refund from Crypto.com is facing jail after admitting that he stole the money. Jatinder Singh spent millions of dollars that were mistakenly refunded by the exchange after some extra zeroes were added to a US$100 refund in May 2021. When the error was discovered seven months later, Singh had already used the money on property and land. Prosecutors are now pushing for a custodial sentence for the trader, who was using his wife’s bank account to trade the market.
$10 Million Refund Was Withdrawn
Singh’s legal troubles began over three years ago when he attempted to deposit $100 into his Crypto.com account using his partner’s bank details. However, discrepancies between the account names led to the rejection of the deposit, but a Crypto.com employee mistakenly entered Singh’s partner, Thevamanogari Manivel’s, account number into the refund document, leading to leading to a US$10.47 million refund.
This monumental error went unnoticed until December 2021, when an internal audit by Crypto.com revealed the discrepancy. By then, Singh and Manivel had already spent millions on two houses and two parcels of land in Melbourne, even gifting a friend AU$1 million.
On Friday, Singh, 39, appeared before the Victorian County Court for a presentence hearing, having pleaded guilty to the theft of AU$6.09 million. Prosecutor Campbell Thomson stated that Singh, upon realizing the mistake, instructed Manivel to withdraw the funds to prevent the transaction from being reversed. Singh later claimed he believed he had won an online raffle.
Manivel Tried to Flee to Malaysia
In the ensuing months, the couple’s extravagant spending spree came to light. When Crypto.com identified the mistake, they contacted Commonwealth Bank, which informed Manivel that the funds needed to be returned. Manivel initially thought this was a scam but eventually transferred AU$4 million to her Malaysian bank account. She was arrested in March 2022 while attempting to fly to Malaysia with a one-way ticket.
Singh’s barrister, Martin Kozlowski, argued that his client now understands the money did not rightfully belong to him. He emphasized that the funds were from a multinational company unaware of the loss until an audit months later. Kozlowski called for Singh’s nearly year-long remand to be considered, suggesting a community corrections order as a more appropriate punishment.
However, Prosecutor Thomson countered that a jail sentence was necessary for such opportunistic offending, even if it is not for a long duration after considering his presentence detention. Singh had spent nearly a year in custody due to concerns he might flee the country.
Singh Not a “Criminal Mastermind”
Judge Martine Marich acknowledged that Singh was not a “criminal mastermind” and noted the unique nature of the situation, describing it as a “proverbial bag of gold falling from the sky.” She is set to sentence Singh later this month.
Manivel was sentenced to 209 days in prison, recognized as time already served, and was placed on an 18-month community corrections order in September of the previous year after pleading guilty to recklessly dealing with the proceeds of crime.
This isn’t the first transaction error involving Crypto.com—in 2022 it sent 320,000 to Gate.io by accident.
