UK authorities have apprehended two individuals for stealing £5.7 million worth of cryptocurrencies from victims worldwide. James Heppel, 42, and Jake Lee, 38, have been charged with three counts of conspiracy to commit fraud.

The fraudsters duped cryptocurrency investors by using a fake version of the popular crypto exchange Blockchain.com. Through this replica website, they were able to steal funds from users who logged in using their credentials, affecting 55 victims in 26 countries, including 11 in the UK, as per the South West Regional Organised Crime Unit (SWROCU).

The investigation began when Lee was arrested by Avon and Somerset Police on suspicion of money laundering. During the arrest, authorities recovered three Bitcoin wallet recovery seeds, three digital devices, and £24,000 in cash. Simultaneously, SWROCU was looking into a crypto scam that defrauded a Wiltshire resident of £11,000 in Bitcoin from their wallet.

After analyzing the electronic devices seized from Lee, authorities linked the scam to him and Heppel. Both individuals have pleaded guilty to the charges, with Lee facing 4 years in prison and Heppel sentenced to 15 months. A confiscation order of £1 million has been issued against Lee.

The prosecution involved collaboration with various victims and authorities globally, leading to the recovery of £64,000 in cryptocurrency, £835,000 in cash, three cars, and a piece of art by Banksy valued at £60,000.

Cryptocurrency scams are on the rise in the UK, with police warning against platforms like Coscoin suspected of operating Ponzi schemes. A report from TRM Labs revealed that UK residents lost an average of £15,000 to crypto scams since October 2022, including investment frauds, phishing scams, and other fraudulent schemes.

Authorities are cracking down on these scams to protect individuals from falling victim to fraudulent activities in the cryptocurrency space.

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