Summary:
- Incident: In May 2021, Crypto.com mistakenly transferred 10.47 million Australian dollars ($6.86 million) to Thevamanogari Manivel and Jatinder Singh, instead of a 100 AU$ refund.
- Expenditure: Singh purchased multiple homes and gifted a friend 1 million AU$ before the error was discovered.
- Legal Proceedings: Prosecutor Campbell Thomson argues for a prison sentence, stating the act goes beyond a mere crime of opportunity.
Australian prosecutors are seeking a prison sentence for Thevamanogari Manivel and Jatinder Singh, who received nearly $7 million from Crypto.com due to an internal error and spent the majority of the funds before the mistake was discovered. The incident dates back to May 2021, when Crypto.com mistakenly transferred 10.47 million Australian dollars (approximately $6.86 million) to the couple, instead of issuing a 100 AU$ refund. The error reportedly occurred when an employee entered an account number in the payment section of an Excel spreadsheet.
By the time Crypto.com realized the mistake during an internal audit in December 2021, significant sums had already been spent. Singh had purchased multiple properties and even gifted 1 million AU$ to a friend, believing he had won “an online raffle.” The situation quickly turned into a legal matter, with prosecutors arguing that the scale of the incident warrants a prison sentence.
According to an Aug. 2 report, Australian prosecutor Campbell Thomson stated that the amount of money involved makes it “out of range” for this to be considered a simple crime of opportunity. He emphasized that a jail sentence was necessary for Singh, highlighting the severity of the incident.
This case underscores the importance of rigorous internal controls in financial institutions, particularly in the rapidly evolving crypto space. As cryptocurrencies continue to gain traction, legal and regulatory frameworks are being tested and refined, making incidents like this all the more significant in shaping the industry’s future.
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