Australian authorities have charged a 42-year-old man from Sydney over an alleged cryptocurrency investment scheme that prosecutors say siphoned around $3.5 million (A$5 million) from more than 190 elderly and vulnerable victims across the country, underscoring a sharp rise in digitally driven financial crime.
New South Wales Police reported that Cybercrime Squad detectives arrested and charged the man on Friday as part of an investigation launched under Strike Force Resaca. The task force was created earlier this month to examine what officers describe as a large-scale digital asset investment operation that appears to have started in November last year.
According to police, the scam began with seemingly innocuous contact on social media platforms. Elderly Australians and other at-risk individuals were approached with unsolicited messages promising lucrative returns from investments in cryptocurrencies or traditional shares. The offers were framed as low-risk, simple opportunities to “get started” in modern investing, often using professional-looking marketing material and reassuring language.
Once targets engaged, they were encouraged to move their money via an online portal branded as “NEXOpayment.” The platform, investigators allege, was presented as a secure gateway for managing and monitoring investments, complete with dashboards, transaction histories, and customer support contacts designed to mimic the look and feel of legitimate financial services.
Detectives believe that, behind the scenes, funds sent through this portal were funneled through a network of cryptocurrency wallets. This web of addresses appears to have been used to move, disperse, and disguise the origins of the victims’ money, a classic hallmark of laundering activity in the digital asset space. Police say this layering of transactions made it harder for victims-and in some cases their families-to track where their savings had gone once they realized something was wrong.
Authorities allege that many of the victims were persuaded to increase their deposits over time. After an initial, relatively small investment appeared to “perform well” on screen-often showing fabricated profits within the NEXOpayment interface-victims were urged to add more capital to maximize their supposed gains. Some reportedly moved large portions of their retirement funds or life savings, believing they were taking part in a legitimate wealth-building strategy.
In many such schemes, scammers maintain contact for weeks or months to build trust, often posing as personal account managers or investment advisers. While police have not yet publicly outlined every detail of the communication pattern in this case, the reported scale and duration of the alleged scam suggest a systematic effort to groom victims, reassure them, and deflect suspicion whenever questions arose about withdrawals or delays.
The case highlights why older Australians are frequently targeted: they often hold significant savings, may be less familiar with the technical nuances of cryptocurrencies and online trading platforms, and can be more trusting of individuals who present themselves as professionals. Scammers commonly exploit these factors, tailoring their language to resonate with retirees-using terms like “income security,” “inflation protection,” or “safe yield”-while glossing over or misrepresenting the real risks involved.
Law enforcement agencies across Australia have been warning for some time that crypto-themed fraud is becoming more sophisticated. In many modern scams, fake investment portals can closely resemble regulated trading platforms, complete with charts, account balances, and support chats. Victims may only realize they have been defrauded when they attempt to withdraw their money and are met with stalling tactics, unexpected “fees,” or complete silence.
Although police have not publicly detailed the precise charges laid against the 42-year-old man, such cases typically involve alleged offenses including fraud, dealing with the proceeds of crime, and participation in criminal groups or conspiracies. Investigators are likely to continue tracing the flow of digital assets across wallets and exchanges, seeking to identify additional suspects, freeze remaining funds, and build a comprehensive evidentiary trail.
Recovering stolen funds in crypto scams is notoriously difficult. Even when authorities manage to locate wallets holding compromised assets, those funds may have been moved through multiple intermediaries, converted into different cryptocurrencies, or cashed out through offshore services. In some investigations, a portion of the stolen money can be seized or returned, but victims are often left facing partial or total losses.
The alleged exploitation of a bespoke portal like NEXOpayment also raises broader questions about how ordinary users can distinguish between legitimate and fraudulent investment platforms. Unlike well-known, regulated institutions, scam sites often appear suddenly, operate for a relatively short window, and then vanish once a critical mass of deposits has been collected. Their branding may borrow elements from trusted companies, use generic names that sound financial and credible, or rely on fabricated reviews and testimonials.
This incident serves as a stark reminder of several red flags that can help potential investors spot similar schemes:
– Unsolicited contact through social media or messaging apps offering investment “opportunities.”
– Pressure to make quick decisions or deposit larger sums to access “exclusive” rates or bonuses.
– Requests to move money through unfamiliar portals or payment services rather than using well-known, regulated channels.
– Promises of guaranteed or unusually high returns with minimal risk.
– Difficulties withdrawing funds, or sudden extra “taxes and fees” demanded before a withdrawal is processed.
For older investors in particular, independent verification is crucial. Before sending any money, it is wise to speak with a trusted financial adviser, check whether the company is registered with local regulators, and conduct thorough offline research. Simple steps-such as calling a verified phone number rather than one supplied in a message, or confirming the existence of a business through official registries-can prevent devastating losses.
Family members and caregivers also play an important role. They can help older relatives scrutinize unsolicited investment pitches, review bank or transaction statements for unusual activity, and encourage open conversations about financial decisions. Many victims delay seeking help out of embarrassment or fear of appearing incapable, which unfortunately gives scammers more time to operate.
From a policy perspective, the case underscores why regulators and law enforcement have been pushing for tighter oversight of digital asset services and improved cooperation with cryptocurrency exchanges and payment processors. Faster reporting channels, better fraud-detection tools, and clearer requirements for customer verification can make it harder for criminals to move and hide stolen funds.
At the same time, authorities emphasize that not all crypto-related activity is fraudulent. Legitimate projects and regulated platforms do exist, but the rapidly evolving nature of the market, combined with aggressive marketing and complex products, creates fertile ground for exploitation. Distinguishing between genuine innovation and predatory schemes remains a challenge for many everyday users.
As the investigation under Strike Force Resaca continues, more details are expected to emerge about the structure of the alleged network, potential accomplices, and the ultimate destination of the $3.5 million in investor funds. For now, the case stands as another warning that while digital assets may offer new financial opportunities, they also provide new tools for criminals-making vigilance, education, and skepticism more important than ever, especially for elderly and vulnerable members of the community.