A Melbourne couple’s brush with accidental fortune has landed them in legal hot water, raising questions about responsibility and the complexities of cryptocurrency exchanges.
In May 2021, Crypto.com, a major cryptocurrency exchange, committed a significant error. Due to a human mistake, an employee allegedly entered an incorrect account number in an Excel spreadsheet. This resulted in a massive transfer of 10.47 million Australian dollars (approximately $6.86 million USD) being sent to Thevamanogari Manivel and Jatinder Singh, an Australian couple, instead of a meager 100AUD refund they had requested.
Fast forward to August 2024, nearly three years after the incident. The case has reached court, with Australian prosecutors arguing for a jail sentence for Singh. Prosecutor Campbell Thomson emphasized the substantial sum involved, asserting that this situation goes beyond a mere “crime of opportunity.”
Singh’s defense, led by lawyer Martin Kozlowski, countered that the unusual circumstances clouded Singh’s judgment. He argued that anyone placed in such a situation might make similar decisions. Kozlowski further pointed out the lapse on Crypto.com’s part, highlighting the fact that the exchange itself remained unaware of the missing funds until their internal audit.
Adding another layer of complexity, prosecutors raised concerns about Singh being a potential flight risk in March 2023. This stemmed from the fact that only $4.9 million of the transferred money had been recovered at the time, with some funds reportedly sent overseas.
Manivel, Singh’s partner, received a sentence of approximately seven months in prison (with credit for time served) and an 18-month community corrections order in September 2023 after pleading guilty to “recklessly handling the proceeds of crime.”
Crypto Crime on the Rise in Australia
This incident coincides with a reported increase in cryptocurrency-related crime within Australia. The Australian Transaction Reports and Analysis Centre (AUSTRAC) released their Money Laundering National Risk Assessment in July 2024, highlighting a rise in criminal activity involving crypto and associated services. AUSTRAC anticipates this trend to continue due to the perceived anonymity and swiftness of cryptocurrency transactions.
The Crypto.com case serves as a cautionary tale for both users and cryptocurrency exchanges. While the human error on the part of the exchange initiated the incident, the couple’s actions raise questions about responsibility and awareness when faced with such an unexpected windfall. The case also sheds light on the growing concern over cryptocurrency-related crime and the need for stricter regulations within the Australian financial landscape.
