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

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

According to the report of Lancashire Telegraphthe investigation centered on James Parker from Blackpool, who identified the vulnerability in 2017.

In three months, Parker and his associates stole more than £20 million in credits through the security breach. Proceeds from the scheme were laundered with the help of Stephen Boys from Clayton-le-Moors, who earned the nickname ‘Rodney’ from ‘Only Fools and Horses’.

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

Police recovered 445 Bitcoins (BTC) worth £22 million at the time, as well as luxury watches, homes, cars and designer items, including a £600 wine cellar. More than £1 million was found in various bank accounts.

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 were convicted 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 sentences. Austin Beddoes, 30, received a suspended sentence.

The victim was fully compensated for the loss of £24.5 million.

Due to the increase in the value of Bitcoin, the assets seized exceeded the initial fraud of £3 million. This surplus will be split between the Home Office, the courts and Lancashire Police.

DS Dave Wainwright of the economic crime unit noted that the defendants have three months to comply with court orders or face a further 14 years’ imprisonment.

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