In a significant crackdown, Sydney police have brought to light a cryptocurrency scam that allegedly defrauded over 190 elderly Australians out of $5 million. The investigation, led by the NSW Cybercrime Squad, has resulted in multiple arrests across the city.
Detectives from the NSW Cybercrime Squad, as part of Strike Force Resaca, have been pursuing two suspects believed to have been operating this scheme since November 2025. Victims were initially contacted through social media platforms, where they were persuaded to invest in cryptocurrency. Following this, the individuals posing as investment advisors directed them to deposit funds into a platform known as “NEXOpayment”.
Authorities claim that the victims, under the impression they were purchasing legitimate cryptocurrency or shares, saw their funds instead shuffled through various wallets and exchanges, mimicking money laundering patterns.
On Friday, law enforcement executed search warrants at residences in Strathfield and Cammeray, as well as a business location in Burwood. During these operations, they confiscated electronic devices and documents pertinent to the case. One suspect arrested in Strathfield faces charges related to the reckless handling of crime proceeds exceeding $5,000, specifically connected to laundering operations via NEXOpayment. He has been granted conditional bail and is scheduled to appear in Burwood Local Court on March 17.
The second suspect, a 36-year-old man, was apprehended in Cammeray and later released pending further inquiries.
In light of these events, Detective Acting Superintendent Jason Smith, the commander of the Cybercrime Squad, emphasized that investment scams represent the highest-loss category of cybercrime in Australia. “These criminals are highly organized, sophisticated, and relentless in their targeting,” he stated. He cautioned that scammers often reach out to victims through social media, text messages, or unsolicited phone calls, promising guaranteed or unrealistic returns.
Smith noted that they create a sense of urgency, pressuring individuals to transfer funds swiftly while exploiting a fear of missing out. “That pressure alone should be a major red flag that something is wrong,” he advised.
He urged potential investors to take the time to thoroughly verify the legitimacy of any investment opportunity, confirming that the company is registered in Australia. “There is no rush,” he stated, advising individuals to consult trusted friends, relatives, or professionals before making any financial commitments.
This incident reflects a troubling increase in cryptocurrency scams targeting vulnerable populations in Australia. Experts warn that scammers exploit urgency and fear, frequently offering “guaranteed returns” to manipulate victims into making hasty decisions. Australians are encouraged to verify investment platforms, check for official registration, and report any suspicious activity to law enforcement or the Australian Competition and Consumer Commission.
