Australian police have charged a 42-year-old man over an alleged 5 million AUD ($3.5 million) cryptocurrency investment scam targeting more than 190 elderly and vulnerable victims. The case highlights persistent fraud risks in retail-facing digital asset channels despite tighter regulatory oversight.
Detectives from the Cybercrime Squad’s Strike Force Resaca executed search warrants at properties in Strathfield and Cammeray on Friday morning, seizing electronic devices and documents. The 42-year-old was arrested in Strathfield and charged with recklessly dealing with proceeds of crime tied to alleged fund laundering through an online platform, while a 36-year-old man was detained and later released pending further inquiries; the accused is due before Burwood Local Court on March 17.
How Did The Alleged $3.5M Crypto Scam Operate?
Police allege victims were approached via social media beginning in November 2025 by individuals posing as investment advisers. Participants were directed to deposit funds into a digital currency portal known as “NEXOpayment,” where they believed they were purchasing crypto, equities, or other products, but authorities say the capital was instead routed through multiple wallets and exchanges in patterns consistent with laundering.
Investment scams remain the highest-loss cybercrime category in Australia, costing the community hundreds of millions of dollars annually, according to Detective Acting Superintendent Jason Smith, Commander of the Cybercrime Squad. In 2024, the Australian Transaction Reports and Analysis Centre established a dedicated crypto taskforce focused on risks linked to roughly 1,800 crypto ATMs nationwide, identifying 90 victims of money mule activity and scams targeting older Australians.
Australian Federal Police
The enforcement push has expanded beyond policing. In October, Home Affairs Minister Tony Burke introduced legislation granting AUSTRAC’s chief executive new powers to restrict or prohibit high-risk digital asset products and delivery channels. Yet authorities continue to document new tactics, including criminals impersonating police and misusing Australia’s ReportCyber platform to gain access to victims’ wallets and seed phrases, raising a pressing question: can enforcement keep pace with increasingly adaptive fraud networks? The March court appearance will offer the next signal on prosecutorial momentum in Australia’s tightening crypto compliance regime.
