Australian police have charged a 42-year-old man in connection with a cryptocurrency investment scheme that allegedly defrauded more than 190 elderly and vulnerable individuals of 5 million AUD ($3.5 million).
The suspect is free on conditional bail and is scheduled to appear at Burwood Local Court on March 17, according to a statement.
Per the statement, detectives from the Cybercrime Squad’s Strike Force Resaca executed search warrants Friday morning at homes in Strathfield and Cammeray, where officers gathered electronics and documentation relevant to their investigation.
At the Strathfield address, police arrested the 42-year-old man and charged him with “recklessly” dealing with proceeds of crime, relating to the laundering of funds through an online platform. A second man, aged 36, was arrested in Cammeray and taken to Chatswood Police Station before being released pending further inquiries, the police said.
The investigation alleges that victims were solicited via social media platforms starting in November 2025. Police stated individuals purporting to be investment advisors directed participants to deposit capital into a digital currency exchange portal known as “NEXOpayment.”
Victims believed they were purchasing cryptocurrency, shares, or other legitimate investment products. Instead, funds deposited into the NEXOpayment platform were allegedly redirected through multiple cryptocurrency wallets and digital currency exchanges in a pattern characteristic of money-laundering activity, police said.
Crypto scammers in the spotlight
Detective Acting Superintendent Jason Smith, Commander of the Cybercrime Squad, noted in the statement that investment scams represent the highest loss category of cybercrime in Australia, costing the community hundreds of millions of dollars annually.
The enforcement action follows a period of heightened regulatory and criminal activity within the Australian 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 approximately 1,800 crypto ATMs.
AUSTRAC CEO Brendan Thomas said in a statement last October that the taskforce had produced “incredible results in a brief time,” including the identification of 90 victims of money mule activity and scams targeting older Australians.
The administrative landscape for digital assets tightened the same month when Minister for Home Affairs Tony Burke, on Oct. 16, introduced legislation granting the AUSTRAC CEO new powers to restrict or prohibit high-risk products and delivery channels.
Despite heightened enforcement activity, law enforcement has continued to report new tactics. In November 2025, the AFP-led Joint Policing Cybercrime Coordination Centre detailed cases in which criminals impersonated police officers and used Australia’s ReportCyber platform to lend credibility to attempts to obtain access to victims’ cryptocurrency accounts and seed phrases.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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