What Do Police Allege Happened?
Australian police have charged a 42-year-old man over his alleged involvement in a cryptocurrency investment scheme that authorities say defrauded more than 190 elderly and vulnerable individuals of 5 million AUD ($3.5 million) since November 2025.
According to a police statement, detectives from the Cybercrime Squad’s Strike Force Resaca executed search warrants at properties in Strathfield and Cammeray on Friday morning. Officers seized electronic devices and documentation as part of the investigation.
At a Strathfield address, police arrested the 42-year-old man and charged him with recklessly dealing with proceeds of crime, linked to the alleged laundering of funds through an online platform. He was granted conditional bail and is due to appear at Burwood Local Court on March 17.
A second man, aged 36, was arrested in Cammeray and taken to Chatswood Police Station before being released pending further inquiries.
How the Alleged Scheme Operated
Investigators allege that victims were approached through social media platforms beginning in November 2025. Individuals posing as investment advisers reportedly encouraged participants to deposit capital into a digital currency exchange portal known as “NEXOpayment.”
Victims were led to believe they were purchasing cryptocurrency, shares, or other legitimate investment products. Police allege that instead of being invested, the funds were redirected through multiple cryptocurrency wallets and exchanges in a pattern consistent with money laundering activity.
Authorities say the structure of the transactions, including the use of several digital asset platforms and layered wallet transfers, was designed to obscure the movement of funds and complicate recovery efforts.
Investor Takeaway
Why Investment Scams Remain a Priority for Authorities
Detective Acting Superintendent Jason Smith, Commander of the Cybercrime Squad, said in the statement that investment scams represent the highest loss category of cybercrime in Australia, costing the community hundreds of millions of dollars each year.
The enforcement action comes amid broader regulatory and investigative activity in Australia’s digital asset sector. In 2024, the Australian Transaction Reports and Analysis Centre established a dedicated cryptocurrency taskforce to address risks associated with the country’s roughly 1,800 crypto ATMs.
Last October, AUSTRAC CEO Brendan Thomas said the taskforce had delivered “incredible results in a brief time,” including identifying 90 victims linked to money mule activity and scams targeting older Australians.
Regulatory Tightening and Ongoing Scam Tactics
Regulatory scrutiny increased further when Minister for Home Affairs Tony Burke introduced legislation on Oct. 16 granting the AUSTRAC CEO expanded powers to restrict or prohibit high-risk digital asset products and delivery channels.
Even with stepped-up enforcement, authorities continue to report new methods used by fraudsters. In November 2025, the AFP-led Joint Policing Cybercrime Coordination Centre detailed cases where criminals impersonated police officers and used Australia’s ReportCyber platform to add credibility to attempts to gain access to victims’ cryptocurrency accounts and seed phrases.
For law enforcement, the pattern remains consistent: fraudsters blend social engineering, digital asset infrastructure, and cross-platform fund transfers to exploit trust and delay detection. For retail investors, particularly older participants entering the crypto market, verification and caution remain critical safeguards.
