£28 Million in Assets Seized from International Bitcoin Fraud Gang

Law enforcement agencies have successfully seized £28 million (US$34 million) in assets from an international Bitcoin fraud gang that exploited a security flaw in an Australian cryptocurrency trading website. The investigation centered around James Parker from Blackpool, who identified the vulnerability in 2017.

The Scheme and its Consequences

Over a period of 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 admitting to carrying £1 million in cash to buy a villa from Russians and paying £60,000 to corrupt officials to continue money laundering operations.

Recovered Assets

Police recovered 445 Bitcoin 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

Prosecution and Sentencing

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.

“Defendants have three months to comply with court orders or risk an additional 14 years imprisonment.” – DS Dave Wainwright from the economic crime unit

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

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.

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