A group of cryptocurrency scammers in the UK has been ordered to repay $30 million within 3 months, or face an additional 14 years in prison, according to a recent court ruling.
The loophole on the CoinSpot exchange and the beginning of the case
In 2017, James Parker, an unemployed man living in Blackpool, UK, discovered a flaw on the Australian exchange that allowed for massive withdrawals without detection.
• Parker, who lived on social benefits, quickly became a millionaire by exploiting this flaw.
• After Parker passed away before being prosecuted, three of his friends, Stephen Boys, Kelly Caton, and Jordan Robinson, continued to exploit the loophole to gain millions.
The luxurious life and the price to pay
During the investigation, police discovered that this group lived in extreme luxury:
• Give high-value Amazon gift cards to passersby.
• Buy a car for a stranger met at the bar.
• They even bought a villa from a Russian partner with a suitcase full of cash.
Luxury assets including expensive watches, luxury cars, and real estate have also been seized during the investigation.
New rulings and developments
• The court has ordered the three individuals to repay the $30 million to CoinSpot as compensation.
• Notably, thanks to the rise in Bitcoin prices, this exchange has fully compensated for the damages, even yielding a surplus of $3.6 million, which has been distributed to UK government agencies.
Complex investigation
According to Lancashire police, this is an 'extremely challenging' and prolonged investigation. CoinSpot even had to hire private investigators to track down the culprits.
The final ruling not only brings justice but also sends a strong message that fraud in the cryptocurrency sector will not be tolerated.