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Crypto.com Error Leads to $10.5M Mistake; Court in October

Legal Fallout from Crypto.com’s $10 Million Mistake

Thevamanogari Manivel has been sentenced to an 18-month community corrections order, including six months of unpaid community service, for recklessly handling the proceeds of a mistakenly transferred $10 million by Crypto.com.

Crypto.com in someone's phone

Manivel was arrested at Melbourne airport in March 2022 while attempting to fly to Malaysia with a one-way ticket and nearly $11,000 in cash.

Crypto.com had accidentally transferred over $10 million to Manivel’s Commonwealth Bank account almost a year before her arrest. The error was only discovered during an audit seven months later.

Manivel’s recent sentencing includes an 18-month community corrections order, with six months of intensive compliance and unpaid community work. This penalty is in addition to the 209 days she had already spent in custody.

The couple allegedly went on a spending spree before the error was noticed, acquiring multiple properties, vehicles, and other items. Approximately $4 million was also transferred to a Malaysian bank account, with a court order to sell a property in Craigieburn valued at $1.35 million to return the proceeds.

Crypto.com discovered the error during an audit in December 2021 and initiated efforts to recover the funds from Commonwealth Bank.

In January 2022, Commonwealth Bank attempted to contact Manivel to reclaim the money, but by then, $4 million had already been transferred overseas. Manivel claimed she perceived the bank’s communication attempts as potential scams. She mentioned that her husband, Singh, had told her he won the money through a Crypto.com competition.

Following her arrest, Manivel spent 209 days in custody until October of the previous year.

Judge Martine Marich stated in her sentencing remarks that the money had been successfully recovered, and no malicious intent was established until Commonwealth Bank alerted Manivel to the error.

“At this point, though your behaviour turns cynical and was motivated by self-interest,” Marich said. “It represented a shortcut to the financial goal that you had previously endeavoured to pursue through your sheer hard work.”

Manivel, who faced theft charges, entered a guilty plea for recklessly handling the proceeds of crime in September 2023. She received an 18-month community corrections order, including six months of rigorous compliance and unpaid community service, in addition to the 209 days she had already spent in custody. Meanwhile, Singh is scheduled for a plea trial on October 23.

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