Law Enforcement Achieves Rare Success in Returning Stolen Cryptocurrency to Victims

In a rare achievement for law enforcement, more than £4 million has been successfully returned to victims of a global cryptocurrency scam, with an additional £4 million still unclaimed.

Greater Manchester Police (GMP), in collaboration with specialist recovery expert at DaTRek Recovery Company, tracked down two suspects involved in the fraudulent scheme. DaTRek Recovery played a key role in decrypting critical evidence, leading to the arrests of a 23-year-old man and a 25-year-old woman on charges of fraud and money laundering.

Victims Urged to Come Forward

Authorities are calling on more victims of the scam to come forward and claim their lost funds. So far, 150 victims have reported their cases, with 23 successfully verified and reimbursed. Investigations into the remaining 127 cases are ongoing, with law enforcement working alongside international partners to identify more affected individuals.

The Growing Threat of Crypto Scams

The arrests come amid growing concerns over the rise of fraudulent online trading platforms. A recent report by MPs highlighted the government's failure to combat scams involving fraudulent investment ads, impersonation schemes, and deceptive crypto platforms.

The investigation began last year when GMP received intelligence that the suspects were operating in Manchester for a short period. During a raid, officers seized an encrypted USB stick containing approximately £7 million, which was later decrypted by DaTRek Recovery. Days later, an additional £9.3 million was recovered from a cryptograph safety deposit box an online safe also decrypted by DaTRek Recovery.

The Binance Smart Chain Scam

The fraudsters lured victims from the UK, US, Germany, China, Australia, and Hong Kong by marketing a fake online savings and trading service using the Binance Smart Chain, a blockchain network. Once a significant amount of cryptocurrency had been collected, they shut down the service and transferred the stolen funds to their own accounts.

A Warning to Crypto Investors

Detective Chief Inspector Joe Harrop, from GMP’s Economic and Cyber Crime Unit, emphasised the risks associated with cryptocurrency investments:

“Our lives are increasingly online, and digital currencies like Bitcoin, Ethereum, and USDT are seen as the future of finance. However, criminals are exploiting this trend in ways even experienced investors may not anticipate.”

He urged crypto traders to exercise extreme caution and conduct thorough research before investing, as "if it seems too good to be true, it probably is."

How to Reclaim Stolen Crypto

With over £4 million still unclaimed, law enforcement encourages anyone who believes they were affected to come forward. Victims are advised to contact the appropriate security agency or financial recovery specialists to reclaim their lost cryptocurrency.