According to a police officer testifying in court, funds from cryptocurrency exchanges were allegedly used to purchase four homes worth $4 million as well as vehicles, artwork, and furniture.
Despite claims that she attempted to leave the country, a Victorian woman accused of theft in connection with a $10.5 million cryptocurrency refund that was issued in error has been released on bail while she awaits trial.
Thevamanogari Manivel and her companion, Jatinder Singh, were committed to stand trial for theft and other charges on Tuesday and appeared in Melbourne magistrates court via video link from prison.
Manivel received $10.47m when Crypto.com meant to refund her $100 in May 2021 instead. The error was not discovered by the company until a December audit.
A Crypto.com compliance officer, Michi Chan Fores, testified in court that a worker in Bulgaria who processed the refund had entered the incorrect numbers into an Excel spreadsheet.
After being processed, she claimed the refund request was sent to an Australian payment processor, who then deposited the funds into Manivel's Commonwealth Bank account.
The court heard that although Singh's name was on the Crypto.com account, the transfer may have actually gone to Manivel's account because he used her bank card to make the cryptocurrency purchase.
After receiving a notification from the Crypto.com app about a contest, Singh allegedly believed he had won the money. He also revealed this to Manivel.
Fores, however, disputed that there ever was such a contest and asserted that Crypto.com did not notify users of competition winners via push notifications.
It is claimed that $4 million was transferred to a Malaysian bank account, and the remaining $3 million was used to purchase four homes. According to evidence presented in court, the remaining funds were used to purchase gifts, cars, artwork, and furniture.
The majority of the money was later repaid, but $3 million is still owed, and civil action is being taken to freeze the properties and recover the money from relatives.
Three charges against Manivel were dismissed after he entered a not guilty plea, including theft from Commonwealth Bank for taking the money out of the bank and careless handling of criminal proceeds.
She was detained in March at Melbourne International Airport while allegedly attempting to purchase a one-way flight from Australia to Malaysia with about $11,000 in cash, which constitutes a separate charge.
When accused of theft for taking the money from the bank for Crypto.com, Singh entered a not guilty plea.
Using a $10,000 surety from her brother, Manivel's attorney, Jessica Willard, requested that her client be released on bail.
She claimed that when Manivel attempted to fly home to see her ex-husband and kids, she was unaware that criminal charges were being brought against her.
Willard argued that Manivel has been detained since her arrest more than six months ago and faces spending another 12 months in jail before the trial starts.
Manivel was a flight risk, so the prosecution argued against her being granted bail because it might make it more difficult to collect on unpaid debts.
Manivel was given bail by Magistrate Peter Reardon with strict restrictions, such as giving up her passport and not being allowed to go to any points of departure.
On November 8 in the county court, Manivel and Singh will be subject to a hearing for directions.