£1.5M UK Crypto Scam, Brazil Hack and Sweden Crypto Seizures
The Financial Conduct Authority (FCA) has sentenced Raymondip Bedi and Patrick Mavanga to a combined 12 years and 10 months in prison for a £1.5 million UK crypto scam. This crypto fraud operation used unsolicited cold calls to lure 65 investors between February 2017 and June 2019. Victims were directed to fake consultancy sites such as Astaria Group LLP and CCX Capital. Both defendants pleaded guilty to conspiracy to defraud, money laundering and breaching financial regulations. The case underscores the risks of unsolicited crypto scam offers and highlights the importance of vetting investment platforms.
Meanwhile, in Brazil, insiders sold central bank credentials for $2,700, enabling hackers to steal 800 million reais ($140 million). Blockchain investigators report $30–40 million was laundered via BTC, ETH and USDT through Latin American exchanges and OTC platforms. In Sweden, a law effective November 2024 allows authorities to seize assets, including crypto, without a formal conviction. More than $8.3 million in suspected criminal assets has been confiscated under this measure.
Bearish
This combined news of high-profile crypto scams, a major central bank hack and expanded asset seizure powers will weigh on market sentiment. In the short term, traders may react to heightened regulatory risks and potential asset freezes by reducing positions in BTC, ETH and USDT. Over the long run, the crackdown could bolster market integrity but the immediate effect is increased caution and selling pressure, leading to a bearish outlook on the mentioned cryptocurrencies.