Two Convicted in £1.5M UK Crypto Fraud Case

Journalist

Hassan Shittu

Journalist

Hassan Shittu

About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

Author Profile

Share

Copied

Last updated:

November 7, 2024 17:03 EST

Why Trust Cryptonews

For over a decade, Cryptonews has covered the cryptocurrency industry, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.

The UK’s Financial Conduct Authority (FCA) warned the public on November 7 to avoid investment opportunities that “sound too good to be true” following an arrest where two men were convicted of a £1.5 million crypto fraud.

Raymondip Bedi and Patrick Mavanga cold-called consumers before offering them high returns for fake online crypto investments. The tactic defrauded at least 65 investors.

Two Convicted in £1.5 Million Crypto Investment Fraud, FCA Issues Warnings to Investors

Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga targeted at least 65 investors through cold calls, directing them to a professional-looking website that offered high returns for fake crypto investments.

According to the FCA, their investigation revealed that the scheme occurred between February 2017 and June 2019.

“Bedi and Mavanga lured investors with promises of high returns on crypto investments, but their schemes were nothing but a callous scam,” Steve Smart, the FCA’s joint executive director of enforcement and market oversight, said. “If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is. If you’re in any doubt – don’t invest.”

Bedi and Mavanga pleaded guilty to conspiracy to defraud, conspiracy to breach the general prohibition under the Financial Services and Markets Act 2000, and money laundering offenses.

Mavanga also faced additional charges, including possession of false identification documents, and was convicted of perverting the course of justice for deleting call recordings after Bedi’s arrest in March 2019.

The court also heard that Bedi and Mavanga operated under company names such as CCX Capital and Astaria Group LLP. The FCA is working to reach affected investors.

The court case, brought by the FCA, concluded with Bedi and Mavanga’s convictions. However, the jury could not reach a verdict for a third defendant, who now faces a retrial scheduled for September 2025.

A fourth individual, Rowena Bedi, was acquitted of money laundering charges. Authorities are still seeking another suspect, Minas Filippidis, concerning the same offenses.

Bedi and Mavanga are set to be sentenced at a later date.

FCA Warns Investors of Scam Risks Amid Crypto Sector Challenges

The FCA continues to caution investors about potential financial scams, urging vigilance through its ScamSmart campaign, which offers resources to help the public spot fraudulent investment schemes.

Steve Smart, the FCA’s joint executive director of enforcement and market oversight, advised,

“If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is. If you’re in any doubt – don’t invest.”

According to the FCA’s 2024 annual report, nearly 87% of crypto firms applying for registration in the UK failed to meet regulatory standards, primarily due to weak anti-money laundering (AML) and fraud protections.

Of the 35 submitted applications, only four received approval, 15 were withdrawn, and nine were rejected.

In June 2023, the FCA introduced a “financial promotion perimeter” to enhance transparency in crypto advertising.

This perimeter sets standards to ensure that crypto ads in the UK are clear, fair, and non-misleading.

Public awareness of crypto scams has also grown, with 63% of consumers now inquiring about scams before investing, a 5% increase from the previous year.