Crypto.com Error Leads to Arrest of Woman at Australian Airport
In March 2022, Thevamanogari Manivel was arrested at Melbourne Airport for allegedly carrying a one-way ticket to Malaysia and nearly $11,000 in cash. This arrest was the result of a mistake made by Crypto.com, which mistakenly transferred over $10 million into Manivel’s Commonwealth Bank account. The error was only discovered seven months later during an internal audit.
Sentence and Background
Manivel pleaded guilty to recklessly dealing with the proceeds of a crime and was later sentenced. Her sentence included an 18-month community corrections order, with six months of intensive compliance and unpaid community work. She had already spent 209 days in custody prior to the sentencing. The incident gained global attention due to its occurrence during a volatile period for the cryptocurrency market.
Manivel had moved to Australia from Malaysia in 2015 to escape a controlling relationship and had plans to bring her three children to the country. She worked various jobs, including as a motel cleaner and a disability support worker.
The Mistake and Acquired Assets
In 2020, Manivel met Jatinder Singh, who was interested in cryptocurrency investments. Singh opened an account on Crypto.com and attempted to transfer money using Manivel’s bank account. The payment was rejected because the names did not match. An employee in Bulgaria made the $10.47 million error while processing a refund in an Excel spreadsheet.
Singh advised Manivel to transfer the funds to a joint Westpac account after discovering the error. During this time, significant assets were acquired, including four houses, and $4 million was transferred to an account in Malaysia.
Audit and Legal Proceedings
In December 2021, Crypto.com conducted an audit and discovered the mistake. The company then began pursuing the return of the funds. Manivel had ignored communications from Commonwealth Bank, assuming they were scams.
Manivel recently entered a guilty plea for recklessly handling the proceeds of a crime. She received an 18-month community corrections order, which includes six months of stringent compliance and unpaid community service. Judge Martine Marich noted that Manivel’s actions turned cynical after being informed of the error by Commonwealth Bank. The legal proceedings also complicated her visa process.
Court Proceedings and Reclaimed Funds
The court learned that Manivel and Singh had ended their relationship. Singh is set to appear in court for a pre-sentencing hearing in October after pleading guilty to a single charge of theft. The majority of the funds have been reclaimed through civil actions initiated by Crypto.com, and Manivel has been fully cooperative throughout the process.
Hot Take: Crypto.com’s Costly Mistake Leads to Legal Consequences
Crypto.com’s error in transferring over $10 million into Thevamanogari Manivel’s account resulted in her arrest at Melbourne Airport. This mistake garnered global attention during a volatile period for cryptocurrencies. Manivel, who had plans to bring her children to Australia, was sentenced to an 18-month community corrections order with intensive compliance and unpaid community work. The incident not only complicated her visa process but also led to the acquisition of significant assets and transfers to overseas accounts. While most of the funds have been reclaimed through civil actions, this costly mistake serves as a reminder of the importance of accuracy in financial transactions.
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