British court sentences two men to prison for crypto fraud
UK court jails crypto fraudsters for $2 million investment scam
A United Kingdom court has sentenced two men, Ramondip Bedi and Patrick Mavanga, to a combined 12 years in prison for orchestrating a fraudulent crypto investment scheme that scammed more than $2 million from unsuspecting investors.
According to the Financial Conduct Authority (FCA), the fraudsters cold-called their victims between February 2017 and June 2019, luring at least 65 individuals to fake investment websites that promised unrealistic returns, reports Cryptopolitan.
The scam operated under multiple entities, including CCX Capital and Astaria Group LLP, and netted approximately £1.54 million (around $2.1 million). Both men pleaded guilty to their charges in 2023, but their final sentencing was confirmed only recently at the Southwark Crown Court. Judge Griffiths sentenced Bedi to five years and four months and handed Mavanga six years and six months behind bars, with authorities still working to confiscate additional funds tied to their criminal gains.
FCA details the depth of the criminal operation
The FCA revealed that Bedi faced charges of conspiracy to commit fraud, conspiracy to breach the general prohibition, and possession and conversion of criminal property. Mavanga’s charges were even more severe, including conspiracy to commit fraud, breaches of regulatory rules, possession of false identification documents, and perverting the course of justice. Reports indicated that Mavanga was found guilty of deleting phone call recordings that documented the duo’s discussions about their crypto scams, earning him an additional offense.
Judge Griffiths described their conduct as a deliberate effort to undermine the UK’s financial regulatory system by using fake cryptocurrency consultancy services to trick victims. The FCA emphasized that the criminals’ manipulation of regulatory loopholes allowed them to evade detection for years, contributing to the scale of the fraud.
FCA vows to intensify crackdown on crypto-related crimes
The sentencing reflects the FCA’s broader effort to clamp down on crypto-related fraud across the United Kingdom. Steve Smart, the FCA’s joint executive director of enforcement and market oversight, stated that Bedi and Mavanga’s ruthless actions inflicted significant harm on innocent victims seeking legitimate investment opportunities. He underscored that the prison sentences serve as a warning to other would-be fraudsters, reaffirming the FCA’s commitment to prosecuting financial criminals and protecting UK consumers.
In the past month alone, the FCA has concluded cases against 11 additional crypto scammers, many of whom pleaded guilty. The regulator continues to address various emerging schemes such as phishing, pig butchering scams, social engineering frauds, rug pulls, and Ponzi schemes. However, some critics argue that the FCA’s aggressive approach may risk alienating legitimate crypto businesses and investors as the UK grapples with shaping fair but stringent regulatory policies.
Recently we wrote that Turkey’s Capital Markets Board (CMB) has launched one of the country’s most extensive enforcement actions against the cryptocurrency industry, blocking access to 46 crypto-related websites.
