Australian couple mistakenly received $6.7 million from Crypto.com, accused of theft for buying 4 houses

Cointelegraph reported that an Australian couple mistakenly received around $6.7 million from the cryptocurrency exchange Crypto.com two years ago. They immediately used the funds to purchase several luxury homes and cars, claiming they thought it was a prize from the exchange. Subsequently, both individuals were charged with theft by the court and sentenced. They are scheduled to plead guilty at the end of October.

A Windfall of $6.7 Million

In May 2021, an Australian couple, Thevamanogari Manivel and his partner Jatinder Singh, encountered a transfer issue on both their bank and Crypto.com accounts, which Crypto.com promptly refunded.

However, the refunded amount to the couple was not the initial $100 AUD, but a staggering $10.5 million AUD, approximately $6.7 million USD.

Reports indicate that the error occurred when an exchange employee mistakenly input the refund account, causing the massive sum to be transferred erroneously into the couple's bank account.

Only 70% of Illicit Gains Remain

It wasn't until Crypto.com disclosed the incident in their annual financial audit report in December of the same year. They also took legal action against the couple, and after the case went through the Supreme Court of Victoria, it was ruled that the funds must be returned to Crypto.com.

However, the couple had already spent a portion of the funds, purchasing four houses, luxury cars, art pieces, furniture, and even an $861,000 USD five-bedroom mansion in a Melbourne suburb as a gift for their sister.

Reportedly, they have repaid around $7 million USD, with civil proceedings to freeze assets still ongoing, and multiple properties are set to be auctioned off by the court to return the remaining funds.

Couple Accused of Theft, Claiming They Thought It Was a Prize

During a court appearance in October last year, the couple claimed they believed they had won a prize from a competition held by the exchange. Singh stated he had received notifications about the competition from the company. However, Crypto.com's compliance officer Michi Chan Fores denied this, stating there was no such information.

Just yesterday, Manivel, accused of theft, confessed to spending the illicit gains and was sentenced to an 18-month community correction order, which includes 6 months of community service. Singh is set to plead guilty on October 23.

A practicing lawyer told 7News:

"If you see unidentified funds in your account and know they don't belong to you, you have a duty to contact and inform the sender, explaining that the funds should not be in your account."

Additionally, "On the contrary, if you retain the funds, it may be considered as holding another person's property by deception. You have no right to possess and use it, and must return it to the party involved."