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Cryptocurrency scam duo receives six-year prison terms in UK court verdict

Canadian phishing scammer Soup allegedly stole over $1m

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TL;DR

  • Ross Jay and Michael Freckleton were sentenced for cryptocurrency scams from 2015-2017.
  • Fake cryptocurrency “Telecoin” is used to deceive investors with false promises of profits.
  • Fraudsters accumulated £509,599 but never engaged in actual cryptocurrency trading.

Two crypto fraudsters, Ross Jay and Michael Freckleton, have been sentenced by the Southwark Crown Court in the United Kingdom after being found guilty of orchestrating a cryptocurrency scam from 2015 to 2017. The duo used false promises of massive profits to deceive unsuspecting investors into investing in a fake cryptocurrency called “Telecoin.”

Under the guise of a firm named Digi Ex, Jay, and Freckleton proactively solicited potential investors with enticing questions like, “How would you like to invest in a cryptocurrency called ‘Telecoin’?” In exchange for non-existent digital assets, they used cold-calling tactics to lure victims into parting with their hard-earned money.

The City of London Police, who led the investigation, revealed that a staggering £509,599 was placed into Digi Ex accounts during the scam’s duration, with £409,493 identified as investment payments. Jay and Freckleton preyed on the burgeoning interest in the cryptocurrency sector during that period and took advantage of investors’ excitement, leading them to invest in Telecoin without proper due diligence.

The court’s findings showed that the pair never engaged in cryptocurrency trading despite accumulating approximately $635,000 in cash from investors. Instead, they lavishly compensated themselves and the Digi Ex staff. Jay and Freckleton paid themselves an exorbitant salary amounting to £139,000 through deceitful practices, draining money from naive investors’ pockets.

Furthermore, the fraudsters withdrew an additional £145,000 in cash from the Digi Ex company account, significantly boosting their ill-gotten wealth. The investigation discovered that none of the funds collected were used to buy or sell tokens, revealing the extent of their fraudulent scheme.

As the cryptocurrency market blossomed, many investors were driven by enthusiasm and impulsively invested in Telecoin without conducting thorough research, making them easy targets for the scam.

Jay and Freckleton’s six-year and three-month sentencing sends a strong message about the UK’s commitment to combating cryptocurrency fraud. The court highlighted the severity of the offense and the significant losses incurred by innocent investors due to the pair’s malicious actions.

Moreover, the case underscores the importance of investor education and vigilance in the ever-evolving cryptocurrency landscape. Authorities urge potential investors to exercise caution, conduct thorough research, and seek advice from credible sources before committing to any investment opportunity, particularly in cryptocurrency.

This landmark conviction serves as a stern warning to those who might contemplate perpetrating cryptocurrency scams in the future. It reaffirms the UK’s dedication to safeguarding its citizens and the financial sector from fraudulent practices, bolstering trust in legitimate digital asset investments.

As the cryptocurrency market continues to evolve, the City of London Police vows to remain vigilant and proactive in combating fraudulent activities, ensuring a secure environment for investors and preserving the integrity of the financial markets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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