Jatinder Singh, 39, who embarked on a lavish spending spree after more than $10.5 million was mistakenly transferred into his bank account has been sentenced to three years in prison.
Singh received the funds in May 2021 when a refund on a cryptocurrency investment went awry due to a significant accounting error.
Singh had initially placed a $100 deposit into his then-partner Thevamangari Manivel’s account on the Crypto.com platform. He was notified that the investment would be refunded due to a discrepancy in account names. However, instead of returning $100, an employee mistakenly entered a bank account number into the funds box, resulting in a transfer of over $10.4 million into Manivel’s account.
Upon realising the error, Singh directed Manivel to transfer the funds from her Commonwealth Bank account into their shared account, anticipating the transaction might be reversed.
The court was told that over the course of 10 months, Singh spent $6 million of the erroneously transferred funds across 160 transactions. The spree included the purchase of two properties and a $1 million gift to a friend. Manivel also transferred $2 million to a Malaysian bank account.
It took seven months for Crypto.com and the Commonwealth Bank to detect the error during an audit. Attempts to recover the funds were ignored by the couple, who believed the communications were part of a scam.
Singh was arrested in March 2022 and later charged with theft. During his police interview, he claimed to have believed the money was a windfall from the Crypto.com website.
In sentencing, County Court Judge Martine Marich highlighted Singh’s cognitive challenges, including a notably low IQ, which impaired his ability to understand the consequences of his actions. The judge noted that Singh’s offences were “entirely situationally motivated” and that he had a good prospect of rehabilitation, pointing to his lack of prior offences and pro-social behaviour outside of this incident.
Judge Marich also acknowledged the impact of Singh’s time on remand, which included racial bullying and the worsening of his mental health, including anxiety, depression, and suicidal thoughts. She remarked that media coverage of the case had left Singh fearful of being ostracised by his community and anxious about his parents discovering his crime.
Singh, who has already served 361 days in custody, will be eligible for parole after two years. His former partner, Manivel, was previously jailed for 209 days after being arrested while attempting to board a flight to Malaysia.
Crypto.com has initiated civil proceedings against Singh to recover the lost funds but has not disclosed how much has been retrieved. The judge also noted that the conviction may impact Singh’s future visa applications as he is an Indian citizen.
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