- Four individuals were sentenced for a Bitcoin fraud in 2017
- Lancashire Police have reported that the group stole $24 million from unaware victims
- The apprehended suspects have already used the money to buy luxury items and properties
The Lancashire Constabulary has arrested four people following a five-year investigation on a Bitcoin fraud that involved £20 million ($24 million). The suspects were involved in an exploit in an Australian crypto exchange in 2017, where they took 445 Bitcoin (BTC) from unsuspecting victims.
According to the Lancashire police report, the group made so much stolen cash that they had “more money than they could spend.” With millions of dollars in their possession, they used the money to buy expensive cars, clothes, and jewelry. However, the police, along with the help of Australia, Finland, and the UK’s Crown Prosecution Service, have traced the money online and taken down the group.
Stephen Boys, Jordan Robinson, Kelly Caton, and James Austin-Beddoes were convicted in 2022 and were sentenced on January 20, 2023, for offenses such as conspiracy to commit fraud and converting criminal property.
The fifth person, James Parker, was the head of the illegal operation. He was found dead in 2021.
According to Detective Sergeant David Wainwright in his interview with BBC, Parker was so rich that he gave out cars to 20 people he met in pubs. He also gave out £5,000 gift vouchers to people he met on the street and £50 tips for taxi drivers. Overall, the gang had a hard time on how to spend the money even though they had already bought a lot of luxurious items.
“He did gain a bit of a reputation around the Fylde coast as being the Bitcoin millionaire, but he kept the source of that very secret until the police found out,” Det Sgt Wainwright said.
The group was tracked down when Kelly Caton called the police after her daughter stole 15 BTC from her account. Det. Sgt Wainwright thought it was unusual for a humble, modest lady to have that sum of money. This call led from one thing to another until it ultimately boiled down to the group’s apprehension.
Stephen Boys, the financial advisor of the team, told the court he spent £1 million to purchase a villa “from Russians he met in the back office of an estate agent.” He was found guilty of transferring criminal property and will do time for six years in jail.
Robinson and Caton are sentenced to prison for four years and six months for fraud and acquiring criminal property. Austin-Beddoes is jailed for one year and six months for admitting to converting criminal property.
The UK Continues Its Regulation on Crypto
The story of Parker’s group is one of many crypto crackdown stories in the UK.
Cryptocurrency regulation in the United Kingdom is currently in a state of flux. The country’s financial regulator, the Financial Conduct Authority (FCA), has issued warnings about the potential risks associated with investing in cryptocurrencies but still needs to implement a comprehensive regulatory framework.
This lack of regulation has led to many scams and frauds involving cryptocurrencies. In response, the FCA has taken steps to crack down on these illegal activities, including issuing warnings to consumers and taking legal action against companies that have engaged in fraudulent practices.
At the same time, the UK government has been exploring ways to harness the potential benefits of blockchain technology, which underlies most cryptocurrencies. The government has established a dedicated unit to research the technology and has launched several pilot projects to test its potential use cases. Authorities have also implemented crypto tax exemptions for foreigners using local brokers.
