Lancashire Police have seized £28 million in assets from an international bitcoin fraud ring that exploited a flaw in an Australian cryptocurrency trading platform, according to the Lancashire Telegraph.
The scam, which began in 2017, allowed ringleader James Parker, from Blackpool, to siphon off more than £20 million worth of credits over three months.
Parker, who passed away in 2021 before facing prosecution, orchestrated the operation with the help of Stephen Boys, a financial advisor from Clayton-le-Moors. Boys laundered the stolen funds, which were used to finance luxury purchases, including expensive cars, high-end watches, and even a villa bought with £1 million in cash. In court, Boys admitted to paying £60,000 to corrupt officials to continue the scheme.
During the investigation, police recovered 445 Bitcoin, then valued at £22 million, as well as more than £1 million held in bank accounts. Additional seized assets included designer goods and property. The fraud was so lucrative that Parker was known to hand out £5,000 gift cards and buy cars for strangers he met in pubs. Police worked with international agencies, including authorities in Australia and Finland, to track down and prosecute the gang.
According to the report, in January 2023, Boys was sentenced to six years in prison for money laundering. Other conspirators, including Jordan Robinson and Kelly Caton, received sentences ranging from two to four-and-a-half years.
A Proceeds of Crime Act hearing at Preston Crown Court revealed that the total loss to the victim was £24.5 million. However, due to the rising value of Bitcoin, police recovered assets worth £28 million, exceeding the original fraud amount. The surplus funds will be split between the Home Office, the courts, and Lancashire Police.
Detective Sergeant Dave Wainwright of Lancashire Police’s economic crime unit described the investigation as “extremely challenging” but expressed satisfaction that the victim was fully compensated. He emphasized that the defendants, who face additional imprisonment if they fail to comply with court orders, were unable to profit from their crimes.
Andrew Kerrigan of the Crown Prosecution Service highlighted the growing threat of cyber-enabled crimes like cryptocurrency fraud. He noted that this case demonstrates the effectiveness of international cooperation in recovering stolen funds and ensuring convicted criminals cannot benefit from their offenses.
In another related development, Thai police are searching for two Russian nationals involved in a violent crypto-related robbery in Phuket. The suspects allegedly attacked a 31-year-old Russian cryptocurrency investor over a $120,000 debt, demanding access to his crypto wallet under threat of death. When he refused, they assaulted him, leaving him unconscious and bound in a hotel bathroom before fleeing with $20,000 in cash.
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