Lancashire police recover £28m in Bitcoin fraud involving Australian crypto exchange

Lancashire police recover £28m in Bitcoin fraud involving Australian crypto exchange

Police Seize £28 Million in Bitcoin Fraud Scheme Involving Exploit of Australian Trading Platform

In a major bust, police have confiscated assets worth £28 million (US$34 million) from an international Bitcoin fraud ring that exploited a security glitch in an Australian cryptocurrency trading website. The operation, which was uncovered through an extensive investigation, involved James Parker from Blackpool, who discovered the vulnerability back in 2017.

The fraud scheme lasted for three months, during which Parker and his accomplices managed to steal more than £20 million in cryptocurrency credits. These illicit proceeds were laundered with the assistance of Stephen Boys, also known by his nickname “Rodney” after the character from “Only Fools and Horses.” Boys, who was based in Clayton-le-Moors, was instrumental in moving the stolen funds, which were spent extravagantly, including distributing £5,000 gift cards in the streets and purchasing cars for strangers at local pubs.

The investigation also revealed that Boys had been involved in high-stakes money laundering activities. He was found to have carried £1 million in cash to buy a villa from Russians, as well as bribing corrupt officials with £60,000 to continue the money laundering operations.

As part of the operation, police recovered 445 Bitcoin worth £22 million at the time, along with luxury assets such as high-end watches, designer goods, houses, cars, and even a £600 wine cooler. They also discovered over £1 million across various bank accounts linked to the criminals.

Here’s a breakdown of the assets seized from the individuals involved:

• £11.5 million from Stephen Boys
• £8 million from James Parker’s estate
• £8 million from Kelly Caton
• £4 million from Jordan Robinson
• £1,100 from James Austin-Beddoes

James Parker, who passed away in 2021 before facing prosecution, was a key figure in the scheme, but his associates were sentenced in January 2023. Boys, 61, was sentenced to six years for money laundering, while Robinson, 26, was handed a combined sentence of eight and a half years. Caton, 47, received similar terms, while Austin-Beddoes, 30, received a suspended sentence.

The victims of the scam, who had lost £24.5 million in total, have been fully compensated for their loss. As a result of Bitcoin’s price increase, the total seized assets now exceed the original fraud amount by £3 million. The surplus will be distributed between the Home Office, courts, and Lancashire Police.

Detective Sergeant Dave Wainwright from the Economic Crime Unit emphasized that the defendants have three months to comply with court orders or face an additional 14 years in prison. The investigation also involved international cooperation with law enforcement agencies from Australia and Finland.

This seizure marks a significant success in the ongoing efforts to combat cryptocurrency-related crimes, with law enforcement agencies working across borders to track and dismantle fraudulent networks.