Australian Police Charge Man in $3.3M Crypto Scam Targeting Elderly

According to the NSW Police statement, the alleged scam began in November 2024 and was investigated by detectives from the Cybercrime Squad under Strike Force Resaca. Victims, primarily elderly and vulnerable Australians, were initially contacted via social media with invitations to invest in cryptocurrency or shares. They were then directed to transfer funds through an online portal called “NEXOpayment.” Police allege that once deposited, the funds were routed through a complex network of cryptocurrency wallets and exchanges in a pattern consistent with money laundering, obscuring the trail of the stolen money.

The investigation culminated on February 20, when police executed search warrants at residences in Strathfield and Cammeray and at a business in Burwood. Electronics and documents were seized during the raids. The 42-year-old man was charged with a proceeds-of-crime offense related to funds allegedly exceeding A$5,000 (approximately $3,542). He was released on bail and is scheduled to appear at Burwood Local Court on March 17. A second suspect, aged 36, was taken into custody during the operations but was later released as investigators continue to assess his alleged involvement.

The arrest is not an isolated incident but part of a significant escalation in Australian enforcement against cryptocurrency-linked crime. NSW Police Cybercrime Commander Detective Acting Superintendent Jason Smith emphasized the organized and relentless nature of these criminals in the official statement, warning the public against unsolicited investment pitches. This case follows other major operations, including Operation Ironside in November 2025, where South Australia Police made 55 arrests. That long-running probe into encrypted-messaging networks uncovered trafficking of drugs and firearms, money laundering, and financial crime involving crypto, leading to seizures previously estimated at around A$58 million (approximately $41 million).

The trend extends to high-profile individuals, as seen last year when former Australian Rugby League star Trent Merrin was arrested and charged over the alleged theft of A$140,000 (approximately $99,000) in cryptocurrency. Police accused him of making dishonest transfers from a victim’s account. These cases collectively signal a robust and coordinated response from Australian law enforcement as crypto adoption grows, bringing with it increased criminal exploitation.

The Australian experience mirrors a troubling international pattern where cryptocurrency is increasingly weaponized against the most vulnerable. The U.S. Department of Justice noted in its 2025 Year-in-Review that crypto played a material role in multiple large-scale fraud prosecutions, including cases specifically targeting elderly victims. The total intended fraud losses in cases charged by U.S. prosecutors last year exceeded $16 billion, underscoring the massive financial scale of these crimes.

As cryptocurrency gains wider retail and institutional use, law enforcement agencies globally warn that the sophistication of related fraud is rising in tandem with victim counts. The alleged use of the “NEXOpayment” platform and layered wallet networks in the NSW case exemplifies this technical evolution. In response, agencies are expanding their investigative resources and public warnings. The central message from authorities, as echoed by Commander Jason Smith, is clear: investors must exercise extreme caution and rigorously verify the legitimacy of any unsolicited opportunity before transferring funds, especially in the volatile and often opaque world of digital asset investments.