A gang of cryptocurrency fraudsters based in Lancashire has been ordered to repay £24.5 million to the victim of their scheme following a lengthy legal battle.
The fraud, which began in 2017, exploited a glitch in an Australian cryptocurrency trading platform and resulted in over £20 million being stolen.
How the Crypto Fraud Was Uncovered
James Parker, the ringleader from Blackpool, discovered a flaw in the trading platform that allowed him to steal funds. Alongside his co-conspirators—Stephen Boys, 56, Kelly Caton, 46, and Jordan Robinson, 26—the group siphoned off millions over a three-month period. Parker died in 2021 before he could face prosecution for masterminding the conspiracy.
The gang’s activities were uncovered, leading to convictions for money laundering and fraud in 2021. Their assets, including Bitcoin, luxury goods, and properties, were seized by Lancashire Police during the investigation.
Court Orders Full Compensation to Victim
At a proceeds of crime hearing at Preston Crown Court, it was revealed that police had recovered over £28 million in assets, including 445 Bitcoins now worth £22 million. The funds exceeded the original fraud amount by £3 million due to the rise in Bitcoin’s value. The surplus will be distributed among the Home Office, courts, and Lancashire Police.
The assets recovered include luxury watches, designer goods, properties, cars, and bank account balances. Notable confiscations include a £600 wine cooler and £5,000 in gift cards the group handed out in public.
Details of Court Sentences
• Stephen Boys, from Accrington, was sentenced to six years in prison for converting and transferring criminal property.
• Kelly Caton, from Blackpool, and Jordan Robinson, from Fleetwood, each received four-and-a-half-year sentences for fraud and money laundering.
• James Austin-Beddoes, 28, from St Annes, received an 18-month suspended sentence after pleading guilty to fraud and converting criminal property.
Detectives Praise Successful Compensation
Detective Sergeant Dave Wainwright, who led the investigation, described the case as “extremely challenging” but expressed satisfaction with the outcome.
“I am pleased that the victim has been compensated in full and that the defendants have been unable to benefit from their criminal activity,” said DS Wainwright. The defendants now have three months to comply with the court orders or risk an additional 14 years of imprisonment.
Key Highlights of the Scam
The fraudulent scheme involved Parker using stolen funds to buy cars, properties, and even distribute gift cards to strangers. In one instance, Boys described taking £1 million in cash to purchase a villa from Russian sellers and paying off corrupt officials to continue laundering money.
Crypto Fraud Case Marks Major Win for Police
The successful recovery of assets and full compensation to the victim marks a significant milestone in tackling cryptocurrency-related crime. Lancashire Police continues to highlight the risks associated with cryptocurrency fraud and remains committed to pursuing justice in complex financial cases.
