Queensland Police charge four in $1.5 million alleged crypto investment fraud, urge 'due diligence' to avoid scams
Queensland Police is urging the public to do their "due diligence" before signing up to investment schemes after investigators unearthed an alleged $1.5 million cryptocurrency fraud operating on the Gold Coast.
Queensland Police have charged four people over an alleged $1.5 million cryptocurrency investment fraud operating on the Gold Coast.
Detectives from the Financial and Cyber Crime Group Money Laundering Unit first began investigating in July 2022, focused on alleged fraud and money laundering by companies including Crypto Advisers Australia, Strategic Capital, Active Marketing Solutions, and Alternative Capital.
On March 11 and 12, police arrested and charged two men and two women over the scam, having previously executed search warrants at a several locations across the Gold Coast.
Following investigations, a 46-year-old North Brisbane man was charged with four counts of fraud and one count of knowingly money laundering, first appearing at Brisbane Magistrates Court on March 25 and expected to return to the same court on May 27.
In addition, a 36-year-old Gold Coast man, and two Gold Coast women, 37 and 63, were each charged with one count of money laundering, with all three due to face Southport Magistrates Court on April 29.
Authorities will allege the group defrauded about 30 people between 2018 and 2021 through a Ponzi scheme which was driven in part by cold calls to unsuspecting victims.
Police allege those behind the fraud then moved more than $1.5 million in funds through cryptocurrency, precious metals, luxury motor vehicles, and real estate in order to hide the the origins of the money.
In a statement, Detective Acting Inspector Steve Paskin was quick to remind the public investment opportunities which appeared too good to be true probably were not legitimate, as he urged investors to seek professional advice when considering how to use their money.
"We understand people are keen to invest in financial products that can see a quick return in the current economic environment, however prospective consumers should always do due diligence before investing in any product," he said.
"People should seek professional advice from a registered financial planner to understand the legitimacy of the investment, what their expected returns are, and the risk involved."
His warning was echoed by Queensland Police Financial Cybercrime Commander Craig McGrath, who told a press conference on Monday the state was losing between $13 and $16 million a month due to "fraud-type scams."
The Commander suggested a recent uptick in the number of people seeking to invest in cryptocurrency was partly responsible, as he urged investors to "make sure of what they're investing in".
Monday's arrests followed another set of charges laid in a separate alleged fraud earlier this year.
Queensland Police in February announced five people had been charged in relation to that scam, which saw $3 million defrauded from about 300 victims.
Following both cases, authorities are urging the public to seek advice before investing, as well as to make sure any financial advisor is registered by visiting the state government's Moneysmart website.