Dead Lancashire man convicted in connection to £28M Bitcoin fraud ring

A Lancashire man, James Parker, has been arrested in connection to a Bitcoin fraud ring that stole £28 million from an Australian cryptocurrency website. According to authorities, the scheme started in 2017 after Parker discovered a loophole that allowed him to steal money from the cryptocurrency trading website. He allegedly used the stolen funds to support his lavish lifestyle. 

Parker, alongside other co-conspirators, used the loophole to siphon money from the website, stealing funds worth £20 million in credits over the next three months.

Authorities claimed that the funds from the illicit act were laundered by Parker’s corrupt financial advisor Stephen Boys, who worked with the Winster Court in Clayton-le-Moors. Parker, who discovered the glitch, went on to include others who were integral to the affairs of the gang.

Lancashire police investigation uncovers Bitcoin fraud ring 

According to authorities, the Bitcoin fraud ring spent the money from its affairs lavishly. For instance, people in the streets were gifted £5,000 gift cards, and Parker, who is originally from Blackpool, gave new cars to people he met at the pub.

During the investigations, the police recovered 445 BTC, worth £22 million at the time.

Other than the BTC, the police also seized luxury watches, houses, exotic cars, and several designer goods, including a wine cooler worth £600 from the group. They also recovered more than £1 million in several bank accounts.

Lancashire police said it worked with several international law enforcement, including authorities in Australia, Finland, and the Crown Prosecution Service (CPS) to apprehend the criminals. According to the police, Parker died in 2021 before prosecution, while his co-conspirators were sentenced in January 2023.

During the trial, Parker’s financial advisor, Boys revealed that he took £1 million in a suitcase to purchase a villa from some Russians he met in the back office of an estate agent. Boys also said he had paid some corrupt officials funds totaling £60,000 to carry on his laundering activities.

Boys was sent to prison for six years for money laundering.

Bitcoin fraud ring members sentenced to jail

Other members of the group were also sentenced for their role in the criminal operation. Jordan Robinson of Fleetwood was sentenced to eight and a half years in prison. He was guilty of three counts of conspiracy to commit fraud, acquisition of criminal property, and converting criminal property.

Another member of the group, Kelly Caton of Blackpool, was also jailed for eight and half years on several counts. She was guilty of conspiracy to commit fraud, acquisition of criminal property, and converting criminal property.

Meanwhile, James Austin-Beddoes of Lytham received a suspended sentence on the same charges.

In the Proceeds of Crime Act hearing at Preston Crown Court on Friday, the police economic crime unit revealed that it seized assets worth £4 million from Robinson, £8 million from Caton, £1,100 from Austin-Beddoes, and £8 million from Parker. The victim lost about £24.5 million to the gang, and the police noted that they have been compensated in full.

Due to the surge in the price of the stolen Bitcoins, the seized amount was more than the stolen amount by about £3 million. The proceeds will be split between the courts, Lancashire police, and the Home Office.

DS Dave Wainwright of the economic crime unit highlighted the challenges of the investigation. “This has been an extremely challenging investigation which has tested our use of the Proceeds of Crime Act,” he said. He also expressed his happiness at compensating the victim in full, noting that the criminals were unable to benefit from their theft. “I would like to thank colleagues from across the police and CPS who contributed to this outstanding result,” he added.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.