Lancashire Police Seize £28 Million in Bitcoin From Fraud Linked to Australian Cryptocurrency Exchange

Law enforcement has confiscated assets worth approximately £28 million (equivalent to US$34 million) from a global Bitcoin scam syndicate that manipulated a flaw on an Australian digital currency exchange platform.

The Lancashire Telegraph detailed the case, noting James Parker from Blackpool as the person who detected the bug in 2017.

Within a span of three months, Parker, accompanied by his circle, was able to extract over £20 million in credits by exploiting the security lapse. Stephen Boys from Clayton-le-Moors, who was likened to “Rodney” of “Only Fools and Horses,” took part in cleansing the illicit gains.

The inquiry brought to light reckless spending behaviors, such as giving away £5,000 in gift vouchers on the streets and gifting vehicles to unsuspecting patrons at pubs. Boys confessed to smuggling £1 million in cash to purchase a villa from Russian sellers and allocating £60,000 in bribes to keep the laundering scheme operational.

Authoritative forces managed to reclaim 445 Bitcoin (referred to as BTC) valued at £22 million at that moment, alongside other high-value items like luxury watches, properties, vehicles, and designer products – including a lavish £600 wine cooler. Accounts held in excess of £1 million were also uncovered.

The confiscated wealth distribution among the convicts was listed as follows:

• Stephen Boys accounted for £11.5 million
• The estate of James Parker amounted to £8 million
• Kelly Caton possessed assets totaling £8 million
• Jordan Robinson accounted for £4 million
• James Austin-Beddoes had a nominal sum of £1,100

While Parker passed away in 2021 before facing trial, the surviving accomplices were sentenced in January 2023. Boys, 61, received a six-year sentence for laundering activities. Robinson, age 26, was handed sentences adding up to eight and a half years; the same sentencing ballpark was given to Caton, aged 47. In contrast, Austin-Beddoes, aged 30, was given a probationary sentence.

The defrauded party was entirely reimbursed, reflecting a loss of £24.5 million.

Interestingly, due to the surge in Bitcoin’s market value, the confiscated assets have surpassed the initial fraudulent amount by £3 million. This excess is set to be allocated among the Home Office, the courts, and the Lancashire Police force.

DS Dave Wainwright, attached to the economic crime division, emphasized that the convicts have a three-month window to settle their respective legal orders or face an added 14 years of imprisonment.

The case was marked by a collaborative effort between law enforcement agencies in Australia, Finland, and local units.