- U.K. Court Sentences 4 Men to 15 Years Prison for $26M Crypto Fraud
- Jonathan Kelleher of the Crown Prosecution Service said the offenders used the internet to obtain millions.
- They collaborated with the late James Parker, who masterminded the conspiracy from his home in Blackpool over three months between October 2017 and January 2018.
A U.K. court has sentenced four men to 15 years in Prison after finding them guilty of fraudulently obtaining and laundering Bitcoin (BTC) and other cryptos worth approximately $26 million from an Australian cryptocurrency exchange, according to a recent report by the Crown Prosecution Service (CPS).
The court determined that the four men, Stephen William Boys, Kelly Caton, Jordan Kane Robinson, and James Austin-Beddoes, were guilty of fraud, with the U.K.-based Preston Crown Court establishing that they converted and transferred criminal property. From the report, the four are all within the 24 to 54 age bracket, and with the guilty ruling, they face 15 years of imprisonment.
According to the U.K.-based Preston Crown Court, the four convicts collaborated with the late James Parker, who died in 2021. In the determination, the court found that Parker “masterminded the conspiracy from his home in Blackpool over three months between October 2017 and January 2018.”
Speaking for the CPS, Jonathan Kelleher said:
“These offenders used the internet from the comfort of their homes to obtain tens of millions of pounds of bitcoin which did not belong to them.”
Notably, despite Parker’s 2021 demise and escape from prosecution, investigators have secured a £1 million civil recovery order against the deceased’s estate.
The Four Defrauded $18 million From An Exchange
To execute his heist, Parker took advantage of the vulnerability
of the trading platform enabled him and his partners to obtain funds worth millions of pounds in crypto from his trading account on a crypto exchange based in Australia.
The court filing states that between October 2017 and January 2018, Parker withdrew crypto assets worth £15 million (approximately $18 million). The Preston Crown Court also found that two of the four sentenced to Prison, Kelly Caton and Jordan Robinson, deceitfully withdrew £2.7 million and £1.7 million, respectively, from their accounts.
In the filing, the court describes them as “associates favored with knowledge of the exploit.”
Another player in the case is Stephen Boys, Parker’s financial adviser, who worked with a U.K. national called Kambi, based in the United Arab Emirates (UAE). Kambi helped Boys to convert the crypto into fiat currency, after which the money was laundered via several foreign-based online accounts.
Nevertheless, a statement from a court spokesperson indicates that “A very significant amount of the laundered assets have been returned or are in the process of being recovered on behalf of the Australian cryptocurrency exchange.”
Investigators Collaborated With Australian and Finnish Counterparts
To solve the case, the court employed the services of investigators from Australia and Finland to help the teams because a lot of technical expertise was needed for the investigation. In particular, the CPS used its Civil Recovery Unit in liaison with specialist officers from the North West Regional Organized Crime Unit.
The joint task force identified the stolen assets and obtained a Civil Recovery Order in the High Court. Reportedly, the estimated value was approximately £1 million.
The collaboration was not limited to the U.K., with one CPS official saying they worked with Australian and Finnish authorities to analyze a notable amount of digital material. As per his description, asset recovery is still ongoing, but a significant portion has already been returned to the exchange.
Consequently, Stephen Boys relinquishes his reputation as a professional financial adviser and is now facing six years in jail after the court found him guilty of “converting and transferring criminal property.” Similarly, the first and second accomplices, Kelly Caton and Jordan Robinson, who withdrew £2.7 million and £1.7 million, respectively, are facing four and half years in jail each after they were found guilty of fraud, converting, and acquiring criminal property.
The fourth convict, James Austin-Beddoes, was also found guilty of fraud and acquiring criminal property after he pleaded guilty to converting criminal property. He was sentenced to 18 months (1.5 years) and a year-long suspension.
Crypto Fraud Cases Rise In The U.K.
The U.K. appears to be a famous ground for crypto fraud, with recent reports from the U.K. police unit Action Fraud highlighting that cryptocurrency fraud cases have increased by around 30% in one year. Just within 2022, the crypto industry reported hacks worth over $3 billion.
According to a January report, the U.K.’s leading crime agency has advertised job postings for a crypto investigator, noting,” accepted recruits would receive salaries between £40,209 and £43,705.” Similarly, the U.K. police now have cryptocurrency pundits stationed in different parts of the country.
