An ultimatum was given to a gang of British criminals jailed for crypto theft: pay $30 million back in three months. Or risk spending another 14-years behind bars.
Back in 2017, James Parker had discovered a glitch in an Australian exchange called CoinSpot that allowed him to withdraw vast amounts of money—initially without detection.
Parker, who was a victim of the bugging scheme before it could be brought to justice, died without being prosecuted. However three other friends were able to profit from this by making millions.
Stephen Boys and Kelly Caton were both jailed in 2012 for money laundering. A judge has now ordered them to pay compensation to CoinSpot so they don't benefit from their crime once released.
The dramatic rise in Bitcoin's price means the exchange has actually already been made whole—with a surplus of $3.6 million shared out between British courts, the police and the government.
During the trial that led to the gang's conviction, a court heard of their wild excesses while the scam was in full swing.
It was alleged that they gave out Amazon vouchers of high value to strangers in the streets, bought cars for those whom they just met in a bar, and purchased a Russian-owned villa by giving them suitcases full of money.
Luxury watches, high-end cars, and properties were also seized when the police sprang into action—with CoinSpot's founder hiring a private investigator to track down the gang's ringleader.
Parker had been bed-bound and unemployed in Blackpool when he began to dabble in crypto. According to the police, he went from living off welfare to becoming a millionaire by exploiting this bug.
Crown Prosecution Service of U.K. worked together with the police in order to estimate the value the three imprisoned men held.
Lancashire Constabulary claims it was an "extremely challenging investigation"—but the confiscation order imposed by the judge is an "outstanding result."
Stacy Elliott edited this article.