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

Police have seized £28 million (US$34 million) in assets from an international Bitcoin fraud gang that exploited a glitch in an Australian cryptocurrency trading website.

As per the report by the Lancashire Telegraph , the investigation centered around James Parker from Blackpool, who identified the vulnerability in 2017.

Over three months, Parker and his associates stole more than £20 million in credits through the security flaw. The scheme’s proceeds were laundered with help from Stephen Boys of Clayton-le-Moors, who earned the nickname “Rodney” from “Only Fools and Horses.”

The investigation revealed extravagant spending, including £5,000 gift cards distributed on streets and cars purchased for random pub acquaintances. Boys admitted to carrying £1 million in cash to buy a villa from Russians and paying £60,000 to corrupt officials to continue money laundering operations.

Police recovered 445 Bitcoin ( BTC ) worth £22 million at the time, along with luxury watches, houses, cars, and designer goods, including a £600 wine cooler. More than £1 million was found in various bank accounts.

The assets seized from individual members included:

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

Parker died in 2021 before prosecution, but his co-conspirators received sentences in January 2023. Boys, 61, was jailed for six years for money laundering. Robinson, 26, received multiple sentences totaling eight and a half years, while Caton, 47, received similar terms. Austin Beddoes, 30, received a suspended sentence.

The victim has been fully compensated for the £24.5 million loss.

Due to Bitcoin’s value increase, the seized assets exceeded the original fraud by £3 million. This surplus will be divided between the Home Office, courts, and Lancashire Police.

DS Dave Wainwright from the economic crime unit noted that defendants have three months to comply with court orders or risk an additional 14 years imprisonment.

The investigation involved international cooperation with law enforcement in Australia and Finland.