Cryptocurrency scammers defrauded over a hundred retirees of $5 million., 2026/02/23 13:58:09

The police in Sydney, Australia, have reported on a cryptocurrency fraud scheme that has affected approximately 190 Australians, the majority of whom are retirees. The total financial loss has been estimated by law enforcement at $5 million. Two suspects have been apprehended.

The fraudsters identified potential victims through social media and persuaded them to invest in cryptocurrency. Subsequently, individuals posing as investment advisors contacted the victims and encouraged them to deposit funds onto the digital platform NEXOpayment. According to the police, the victims believed they were purchasing legitimate cryptocurrency or shares, but in reality, the funds were transferred through numerous wallets and exchanges in a manner typical of money laundering. 

Authorities have identified “investment frauds” as the most lucrative category of cybercrime for criminals in Australia. The scammers create a sense of urgency, pressuring individuals to quickly transfer money, and exploit the fear of missing out on potential gains. Pressure from the “advisor” should raise red flags, so investors are advised to first verify that the platform is legitimate and has the necessary operating licenses, according to police recommendations.  

Currently, cryptocurrency companies in Australia are not required to obtain a financial license, as the bill regarding this has only passed its first reading. 

The increase in cryptocurrency-related crimes has prompted the Australian Securities and Investments Commission (ASIC) to advocate for the passage of the licensing bill for crypto platforms within this year. The agency believes that it is becoming increasingly difficult to track transactions through rapidly evolving crypto services.