In a case highlighting the increasingly bizarre intersection between the art of classic scamming and modern digital finance, it has emerged that a British fraudster,
Timothy Barnes, made false claims to own $4.7 million in assets crypto on-chain, which he promised to use for recovering his victims.
The 69-year-old man's attempts to exploit the murky waters of digital assets were part of a wider, ongoing drama that has seen him face a total of 39 counts relating to fraud, theft and similar offences.
Barnes eventually pleaded guilty to 34 separate offences, according to local reports in June, which detailed his extensive criminal activity.
This incident is a clear example of the current crypto crime wave and interesting new trends emerging. Although Web3-native criminals are becoming more sophisticated, this case shows how even everyday, 'classic' scams are incorporating elements of the cryptocurrency industry. Barnes, a British citizen, stole approximately $2.6 million from numerous victims through a variety of schemes.
The Evolution of the Classic Scam
Barnes' main modus operandi was based on classic baiting techniques. He posed as legitimate institutions such as banks, demanding payments from victims for bogus concerns such as taxes, mortgages or loan repayments.
I was ready to sentence this defendant today. I was provided with a piece of material. There is no telephone number on this document, nor is there an account number. We remind ourselves that if this were to be a forged document, that could be an aggravating factor, said Judge Andrew Lockhart, who is presiding over the case.
However, he has upgraded some aspects of his scheme by using digital assets, not only to conduct some of these crimes and potentially safeguard his ill-gotten gains, but also, more surprisingly, to influence and potentially prolong his legal proceedings.
The most extraordinary aspect of the case emerged shortly before the sentencing. Barnes claimed to hold a substantial stash of $4.7 million in on-chain wallets.
He alleged that this huge digital treasure could be liquidated and used to provide much-needed compensation to those he had defrauded.
Although the trial took place in June, it was only recently that the UK courts ruled conclusively that this alleged stockpile of cryptocurrencies did not exist and was a complete fabrication.
The false claims ultimately did not help Barnes' defence, given his subsequent guilty plea to 34 offences. His crimes spanned a wide range, illustrating his versatility as a fraudster.
For example, he stole a hefty sum of $277,622 from a 'charity that helps promote and preserve the heritage of motorbikes', an act that was decidedly non-digital in nature.
Despite the largely traditional methods employed, this 67-year-old man's attempt to use a fake cryptocurrency-based defence in court is a peculiar sign of the times.
This bizarre episode serves as a clear, albeit incomprehensible, example of how profoundly cryptocurrency has begun to permeate even the most traditional corners of UK society and legal system, changing crime and defence strategies in unexpected ways.
