A Lancashire man arrested for involvement in £28 million Bitcoin fraud ring
James Parker, a man from Lancashire, has recently been arrested in connection to a Bitcoin fraud ring that stole £28 million from an Australian cryptocurrency website. The fraudulent scheme started back in 2017 when Parker discovered a loophole that allowed him to siphon money from the cryptocurrency trading platform. It is alleged that Parker used the stolen funds to finance his extravagant lifestyle.
Parker, along with his accomplices, exploited the loophole to embezzle funds from the website, ultimately stealing credits worth £20 million over a span of three months.
Law enforcement authorities revealed that the illicitly obtained funds were laundered by Parker’s corrupt financial advisor, Stephen Boys, who was associated with Winster Court in Clayton-le-Moors. Parker, the mastermind behind the glitch, brought in other individuals who played crucial roles in the gang’s operations.
Lancashire police uncover Bitcoin fraud ring
Investigators disclosed that the members of the Bitcoin fraud ring lived lavishly, indulging in extravagant spending of the stolen funds. For instance, they distributed £5,000 gift cards to random individuals on the streets, and Parker, originally hailing from Blackpool, gifted new cars to acquaintances he met at the pub.
During the course of the investigation, the police managed to recover 445 BTC, valued at £22 million at the time.
In addition to the seized Bitcoins, authorities confiscated luxury watches, properties, exotic vehicles, and various high-end designer items, including a wine cooler valued at £600, from the group. They also successfully reclaimed over £1 million from multiple bank accounts.
The Lancashire police collaborated with international law enforcement agencies in Australia, Finland, and the Crown Prosecution Service (CPS) to apprehend the culprits. Parker passed away in 2021 before facing prosecution, while his co-conspirators were sentenced in January 2023.
During the trial, Boys confessed to transporting £1 million in cash in a suitcase to purchase a villa from Russian individuals he encountered in the back office of a real estate agency. He also admitted to paying corrupt officials a total of £60,000 to facilitate his money laundering activities, resulting in his six-year prison sentence.
Bitcoin fraud ring members sentenced
Other members of the criminal group received varying prison sentences for their roles in the fraudulent operation. Jordan Robinson of Fleetwood was sentenced to eight and a half years for multiple charges, while Kelly Caton of Blackpool also received an eight and a half year jail term for her involvement. James Austin-Beddoes of Lytham received a suspended sentence for similar charges.
During the Proceeds of Crime Act hearing at Preston Crown Court, the police economic crime unit disclosed that they confiscated assets worth millions from the convicted individuals, with the victim being fully compensated for the £24.5 million loss incurred. The seized Bitcoin, valued at more than the stolen amount by approximately £3 million due to price surges, will be distributed among the courts, Lancashire police, and the Home Office.
DS Dave Wainwright of the economic crime unit commended the collaborative effort in resolving the case. “This has been an arduous investigation that tested our utilization of the Proceeds of Crime Act,” he stated. Wainwright expressed satisfaction in providing full compensation to the victim and preventing the criminals from benefiting from their illicit activities. He extended gratitude to all involved parties for their contributions towards achieving a successful outcome.
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