Police have seized £28 million (US$34 million) in assets from an international Bitcoin fraud group that exploited a glitch in an Australian cryptocurrency trading website.
According to the report made by the Lancashire Telegraphthe study was based on James Parker from Blackpool, who identified the vulnerability in 2017.
Over three months, Parker and his associates stole more than £20 million in credits through a security breach. Money from the scheme was launched 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 for random pub acquaintances. Boys admitted carrying £1 million in cash to buy a town from the Russians and paying £60,000 to corrupt officials to continue money laundering operations.
The police recovered 445 Bitcoin (BTC) worth £22 million at the time, along with luxury watches, houses, cars, and designer goods, including a £600 wine cooler. More than £1m was found in various bank accounts.
Assets seized from individual members included:
- £11.5 million from Boys
- £8 million from the Parker estate
- £8 million from Kelly Caton
- £4 million from Jordan Robinson
- £1,100 from James Austin-Beddoes
Parker died in 2021 before being charged, but his co-conspirators were sentenced 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 terms. Austin Beddoes, 30, received a suspended sentence.
The victim has received full compensation for the £24.5m loss.
As a result of the rise in the value of Bitcoin, the funds seized exceeded the original fraud by £3 million. This surplus will be shared between the Home Office, the courts, and Lancashire Police.
DS Dave Wainwright from the economic crime unit noted that defendants have three months to comply with court orders or risk a further 14 years in prison.
The investigation involved international cooperation with law enforcement in Australia and Finland.
