UK gang jailed over $5.4 million crypto scam posing as police

Three men in the UK have been sentenced to prison for defrauding victims of more than £4 million ($5.4 million) in cryptocurrency by impersonating police officers and directing them to fake websites, the Metropolitan Police said Thursday. 

According to a statement from the Met Police, the gang lured eight victims into visiting convincing fake police websites, where they stole the victims' crypto holdings. The stolen funds were then laundered through a complex financial network.

Investigators launched the probe in January 2025 after victims reported the fraud, using blockchain transactions, communications, financial records, and cryptocurrency exchange records to identify the group.

"This was a highly complex investigation into a group of calculated manipulators who exploited victims' trust by pretending to be police officers and spent other people’s money to fund their extravagant lifestyles," Detective Inspector Geoff Donoghue said in the statement. 

The three men were sentenced Thursday at Southwark Crown Court. Anthony Ikenwe, 29, received six years for conspiracy to commit fraud and five years for money laundering. Hamza Bashir, 23, was sentenced to three years and nine months for conspiracy to commit fraud and three years for money laundering. Kevin Nwamma, 25, received six years for conspiracy to commit fraud and five years for money laundering.

Police said the trio used the stolen funds to finance a lavish lifestyle, purchasing cars, designer clothes, and Rolexes, despite one of the men having a recorded annual income of just £444 ($597).

Investigators also traced more than £1 million ($1.34 million) in crypto linked to wallets controlled by Ikenwe, and uncovered roughly £500,000 ($673,150) in cash held in a safety deposit box in Dubai. The group also traveled frequently, taking holidays to destinations including Thailand, Japan, Paris, Mykonos, the Maldives, and the Seychelles.

"The Met's Cryptocurrency Team painstakingly traced millions of pounds, combining a wide range of investigative techniques to dismantle a significant criminal network," said Donoghue.

Meanwhile, U.S. authorities are also stepping up efforts to combat crypto fraud and money laundering. Prosecutors said Thursday that a federal grand jury indicted Sioux Falls resident Benjamin Paul Wiener on 29 counts tied to an alleged $20 million fraud scheme.