Two men, Raymondip Bedi and Patrick Mavanga, who were responsible for a cryptocurrency scam that embezzled more than $2 million from at least 65 people, have been sentenced to lengthy prison terms by a British court.
The two were sentenced to a total of 12 years in prison and the police are now trying to recover the stolen money.
The prosecution was led by the Financial Conduct Authority (FCA), the UK financial regulator known for its role in combating cryptocurrency fraud. It is another victory for the FCA in its battle against crypto scams.
In recent months, the FCA has stepped up efforts to close numerous cases of cryptocurrency-related scams that have dragged on for years. Some of these cases date back nearly a decade.
One look at crime
Although cryptocurrency-related crime is still a significant problem, the convictions of Bedi and Mavanga show that many scams began years ago, although only now have come to trial. Their illicit activities took place between February 2017 and June 2019. During this period, the two men sold completely fake tokens, misleading investors into believing they would earn high returns that never actually materialised.
In 2023, both Bedi and Mavanga admitted responsibility and pleaded guilty to fraud. Today, the criminal proceedings concluded with a final verdict.
The FCA, known for its severity against fake financial promotions, particularly in the cryptocurrency sector, played a key role in the case.
At first glance, the lengthy trial might be perplexing, but it is part of the FCA's strategy aimed at clearing its backlog of crypto fraud cases, some of which date back to 2016. In the past month alone, the Authority has successfully concluded proceedings against 11 other fraudsters, some of whom had already pleaded guilty.
Patrick Mavanga aggravated his legal position when he was also charged with obstruction of justice. He was found guilty one year after pleading guilty to fraud, for deleting phone records with Bedi, probably to hide evidence of the scam. This offence added one year and two months to his sentence, bringing it to a total of six years and six months.
It is not yet clear whether the FCA is pursuing further investigations into other crypto scams. However, the Authority has publicly stated that it intends to identify and reimburse the victims, stating firmly: "Committing a crime has a price and we will make [Bedi and Mavanga] pay."
"Bedi and Mavanga unscrupulously defrauded dozens of innocent victims and it is only fair that they were sentenced to prison terms. The criminals need to know that committing a crime has consequences and we will do everything we can to make them pay,"the FCA said in a comment.
The FCA also continues to push for changes to cryptocurrency regulations. However, some voices in the industry criticise the authority, accusing it of overzealousness in its legal actions. Despite this, its commitment to fighting fraud and bringing criminals to justice remains undeniable.
