Two charged in Australia over $5M NEXOpayment crypto investment scam
New South Wales Police charged two men after a Strike Force Resaca probe into an alleged A$5 million (≈US$5M) crypto investment scam that targeted more than 190 elderly and vulnerable Australians. Detectives from the Cybercrime Squad executed search warrants at residences in Strathfield and Cammeray and at a Burwood business. Victims were lured via social media and unsolicited messages to deposit funds into a fake trading portal called “NEXOpayment.” Police allege proceeds were routed through multiple crypto wallets and exchanges in patterns consistent with money laundering. A 42-year-old man was charged with recklessly dealing with proceeds of crime above A$5,000, granted conditional bail and due to appear at Burwood Local Court on 17 March 2026. A 36-year-old was arrested during the raids and later released pending further enquiries. Authorities warned investment scams remain one of Australia’s highest-loss cybercrime categories and urged people to verify platforms before transferring funds. For traders: the case highlights ongoing law-enforcement pressure on crypto-enabled fraud and increased scrutiny of crypto flows and on/off-ramps — factors that can affect liquidity, exchange compliance, and regulatory expectations for counterparties and custodians.
Neutral
The news concerns law enforcement action against a crypto investment scam and does not reference any specific cryptocurrency token price, protocol vulnerability, or major exchange collapse. Its primary market effects are structural: increased regulatory and compliance scrutiny, potential short-term tightening of on/off-ramp liquidity, and reputational pressure on platforms associated with fraud, which can mildly affect trading costs and exchange behavior but are unlikely to directly move major token prices. For short-term trading, heightened scrutiny may reduce liquidity on smaller venues and increase volatility for tokens frequently used in illicit flows. Long-term, stronger enforcement could improve market confidence by deterring scams, yielding a neutral-to-slightly-positive structural effect. Overall, the immediate price impact on listed cryptocurrencies is limited, so the classification is neutral.