Crime associated with the crypto ecosystem is one of the major concerns in establishing cryptocurrencies as a part of sovereign financial services. The fall of major exchanges, issues of money laundering and tripping make the situation dwindle. The case of Blackpool Heist further highlights the surmounting problem related to the security of cryptocurrencies.
James Parker and Stephen Boys, both aged 54, are convicted of robbery by Preston Crown Court in 2022/after 2 years of police investigation and six weeks of jury trial. The accusations in the case were held up by the founder of the Australian cryptocurrency exchange, Coinspot, Rusell Wilson mentioned in the court that Parker and his unlikely mob had cheated the firm out of $37 million ($24.5 million). The founder of the coin exchange appointed a private investigator to nab Parker and his associates. Parker and his associates were caught at Manchester airport.
The story began in 2017, during that time Parker started developing an interest in cryptocurrencies and surprisingly because of his keen understanding of cryptocurrencies and the loopholes involved he spotted a flaw in Coinspot’s exchange. He discovered that if he offered a Bitcoin for sale and then went through the motions to buy it back, the computer system would record him as still having that Bitcoin and wrongly credit his account with the sale. For example, if he sold one coin on the exchange worth £1,000 ($1,247), and then bought it back, he would double his money. From his one-bedroom apartment, he exploited a glitch on an industrial level.
As reported during the police investigation Parker went on to exploit the flaw in the system hundreds of times between September 2017 and January 2018. Police records show that on Christmas Day 2017, Parker stole credits of $159,000 in less than one minute. Parker began to share the glitch with a group of friends and acquaintances who would help him make the most of it. He recruited people to create accounts and exploit bugs. Parker viewed himself as a crypto Robin Hood, giving thousands of pounds worth of Amazon vouchers to the homeless.
It is important to note that Coinspot only spotted the fraud as the volume increased. Russell Wilson launched an internal probe which led to the discovery of Parker’s accounts. Parker passed away in January 2021, before charges could be filed against him.
In Preston court in January 2023, the ragtag group stood together waiting for their sentence. The judge, remarking on the lack of remorse from most of them, sentenced them collectively to 26 1/2 years in prison. Crypto crime has soared in the years since these events took place, as the industry has burst into the mainstream. Last year was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses globally, according to data from Chainalysis, a US blockchain analysis firm.
Crypto crime has soared in the years since these events took place, as the industry has burst into the mainstream. last year was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses globally, according to data from Chainalysis, a us blockchain analysis firm. meanwhile, Chainalysis data showed that almost $23.8 billion worth of cryptocurrency was laundered in 2022, a 68% increase from the previous year’s $14.2 billion.
