Crypto-Related Investment Fraud Charges in Sydney
A 42-year-old resident of Sydney is facing charges in connection with a crypto-related investment fraud scheme that allegedly defrauded over 190 senior citizens and at-risk individuals, amounting to approximately A$5 million (US$3.5 million). This recent indictment comes as part of a heightened initiative by authorities to combat the increasing instances of fraud associated with cryptocurrency.
Details of the Investigation
The New South Wales Police revealed that detectives from the Cybercrime Squad arrested the suspect on Friday after launching an inquiry under the code-named Strike Force Resaca. This operation began earlier in the month to examine a significant scam concerning digital asset investments that reportedly started in November of the previous year.
Law enforcement explained that victims were lured via social media platforms with enticing offers to invest in cryptocurrencies or shares. Once interest was piqued, they were directed to transfer money through a website dubbed “NEXOpayment”. Investigators noted that the transactions were processed through a web of cryptocurrency wallets and exchanges in a manner that suggested potential money laundering activities.
Arrests and Charges
Police executed search warrants at several locations, including residences in Strathfield and Cammeray, as well as a business establishment in Burwood on February 20. During these searches, various electronic devices and pertinent documents were confiscated. The individual now faces a charge related to proceeds of crime concerning sums exceeding A$5,000 (US$3,542) and is scheduled to appear at Burwood Local Court on March 17, having been released on bail.
Additionally, a 36-year-old associate of the accused was apprehended during the investigations but was later released while authorities continue to evaluate his involvement. Detective Acting Superintendent Jason Smith, who leads the Cybercrime division, cautioned that the criminals involved are well-organized and relentless in their schemes. He urged potential investors to approach unsolicited financial pitches with skepticism and to ensure due diligence before making any monetary commitments.
Broader Context of Cryptocurrency Crimes
These arrests coincide with a broader clampdown on cryptocurrency-related crimes in Australia. Last November, South Australia Police arrested 55 individuals during Operation Ironside, a covert investigation into encrypted messaging that revealed extensive criminal networks engaging in drug trafficking, gun smuggling, money laundering, and financial crimes linked to cryptocurrencies, leading to seizures estimated at A$58 million (US$41 million).
In a related instance, former Australian Rugby League player Trent Merrin was also apprehended last year for allegedly stealing A$140,000 (US$99,000) in cryptocurrency through dishonest transfers. On an international scale, the U.S. Department of Justice’s 2025 Year-in-Review highlighted that cryptocurrency has been a significant factor in numerous high-profile fraud cases, particularly impacting elderly and vulnerable populations, with total alleged losses surpassing $16 billion. With the rise of cryptocurrency in both retail and institutional markets, law enforcement agencies are enhancing their resources and public advisories to combat this growing trend.
