Australian prosecutors are pushing for imprisonment for a Crypto.com user who mistakenly received $7 million and spent a significant portion before the error was discovered. In May 2021, an accidental transfer of $6.86 million instead of a $100 refund was made by Crypto.com to Thevamanogari Manivel and Jatinder Singh. An employee had reportedly inputted an account number into the payment section of an Excel spreadsheet, causing the mishap.
What Led to the Court Decision?
Following the discovery that the bank account details did not match those of the Crypto.com account holders, the error was identified during an internal audit in December 2021. By then, Singh had already invested in multiple properties and gifted $1 million to a friend. Prosecutor Campbell Thomson argued that the amount involved was too large to be considered a mere opportunistic crime, suggesting a prison term for Singh, although it might not be extensive given his time in custody.
How Did the Defendants Respond?
Defense lawyer Martin Kozlowski contended that Singh did not fully understand the gravity of the situation, emphasizing that the funds originated from a major corporation unaware of the loss until a later audit. Kozlowski argued that anyone in Singh’s position might react similarly, given the unusual circumstances.
Key Takeaways from the Case
– Singh’s lawyer argued the complexity of the situation given the source of the funds.
– Prosecutors highlighted the substantial misuse of the money.
– A significant portion of the funds remains unrecovered, some sent overseas.
– The case underscores the critical need for stringent measures in financial transactions involving large sums.
In March 2023, prosecutors suggested Singh was financially motivated to escape, particularly because only $4.9 million of the amount was recovered, with some being transferred abroad. Singh’s sentencing is expected next month. Meanwhile, Manivel received a roughly seven-month prison sentence and an 18-month community correction order in September 2023 for recklessly handling crime proceeds.
This incident aligns with a rise in crypto-related crimes in Australia. On July 15, the Australian Transaction Reports and Analysis Centre (AUSTRAC) noted an increase in the criminal use of cryptocurrencies in its National Risk Assessment on Money Laundering, attributing this to greater anonymity and faster transaction speeds.