British Crypto Fraudsters Ordered to Pay Back $30M

Three British crypto fraudsters, convicted of laundering millions stolen from an Australian exchange, have been given a stark choice: repay $30 million within three months or face an additional 14 years in prison.

The gang exploited a glitch on CoinSpot in 2017, enabling them to withdraw substantial funds undetected. The ringleader, James Parker, discovered the flaw but died before facing prosecution. However, his accomplices—Stephen Boys, Kelly Caton, and Jordan Robinson—were sentenced for money laundering in 2021.

CoinSpot Reimbursed, Courts Benefit

The dramatic surge in Bitcoin’s value since the theft has allowed CoinSpot to recover its losses, with a $3.6 million surplus now distributed among British courts, law enforcement, and the government.

The court ordered the trio to compensate CoinSpot, ensuring they do not profit from their crimes upon release.

Lavish Spending Spree

During the trial, prosecutors detailed the gang’s extravagant lifestyle funded by the stolen funds:

• Handing out high-value Amazon vouchers to strangers on the street.
• Buying cars for acquaintances met at pubs.
• Purchasing a luxury villa from Russian associates using a suitcase filled with cash.

Police seized numerous high-value items, including luxury watches, high-end cars, and properties, as part of the investigation.

Parker’s Rise and Fall

Parker, the scam’s mastermind, was unemployed and bed-bound in his seaside town of Blackpool when he stumbled upon the CoinSpot glitch. Living on welfare payments, he turned to crypto and quickly became a millionaire.

A private investigator hired by CoinSpot’s founder played a pivotal role in tracking Parker and his associates.

Law Enforcement’s Perspective

The Lancashire Constabulary described the case as an “extremely challenging investigation,” commending the outcome as an “outstanding result.”

The Crown Prosecution Service (CPS) worked closely with police to assess the gang’s assets, ensuring that justice was served.

This landmark confiscation order underscores the importance of holding crypto criminals accountable. The three fraudsters now face a critical deadline, with their fate hanging on their ability to repay their ill-gotten gains.