Crypto.com customer accused of $7 million in spending granted bail

The Crypto.com customer who was accidentally sent $6.95 million (AUD$10.4 million) from the exchange in 2021 and then allegedly went on a spending spree has been granted bail despite $2 million of funds still not has been accounted for.

In the Victorian County Court on March 20, the prosecution tried to convince the judge that imprisonment would be the only way to ensure that the accused, Jatinder Singh, would not flee the country.

The Crypto.com blunder occurred when a Bulgaria-based employee accidentally transferred $6.95 million to his account instead of what was supposed to be a $100 refund in May 2021. The accused allegedly bought four houses and a car with the funds, along with sending a part abroad.

Prosecutors argued that Singh is financially motivated to flee the country because only $4.9 million has been recovered, according to a Herald Sun report.

Of the missing $2 million, over $1.45 million is believed to have been moved offshore to Malaysia, the court heard.

Senior Constable Conor Healy told the judge that Singh “may have access to the outstanding money that has not yet been recovered,” while prosecutor Peter Botros argued that Singh posed an “unacceptable” flight risk because he was living without a visa, had no family in Australia and was unemployed before he was arrested.

However, Judge Daniel Holding did not think this was enough to put Singh behind bars. He instead explained that confiscating Singh’s Indian passport and preventing him from applying for a new one at the Indian embassy would be sufficient:

“If it’s a condition that he doesn’t have a passport or he doesn’t apply for a passport … how is he able to escape the country?”

Singh faces a number of theft charges along with his partner Thevamanogari Manivel, who is the owner of the bank account into which the funds were transferred.

Both pleaded not guilty to the charges. They continue to claim that they rightfully won $7 million through a Crypto.com contest.

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While the incident occurred in May 2021, it was not discovered until an annual audit in December 2021.

The Singapore-based cryptocurrency exchange has since launched civil action in the Victorian Supreme Court to recover its losses.

After suing, the Supreme Court of Victoria ruled that the funds must be returned to the company.