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Two Sentenced in £1.5 Million UK Cryptocurrency Scam
Two men behind a fraudulent cryptocurrency investment scheme that cost victims over £1.5 million have been sentenced to a total of 12 years and two months in prison. The scam, which ran between 2017 and 2019, misled dozens of individuals across the UK with false promises of high returns from fake crypto investments.
Raymondip Bedi and Patrick Mavanga were the central figures in the operation. By cold-calling potential investors and leading them to a convincing but deceptive online platform, they encouraged the transfer of substantial sums of money under the pretense of digital asset consultancy and trading.
Cold Calls, False Promises, Real Losses
The fraud was structured to appear legitimate. Victims were first contacted by phone and directed to a well-designed website that mirrored the look and feel of credible financial services. There, they were promised strong returns through supposed investments in cryptocurrencies.
Instead of entering a legitimate market, the victims’ funds were absorbed by the operation. At least 65 individuals lost money. The total damage exceeded £1.5 million, according to figures confirmed by UK authorities.
A Carefully Crafted Scheme Unravels
The operation came under investigation following a complaint to the Financial Conduct Authority (FCA). In 2023, Bedi, Mavanga, and two other individuals were formally charged. Both Bedi and Mavanga entered guilty pleas.
The case was prosecuted by the FCA, an unusual but increasingly necessary step as regulators expand their role in tackling crypto-related fraud. Their involvement reflects the growing concern over illicit activities within the fintech and digital asset sectors.
In sentencing, the judge described both men as key figures in the scheme, pointing to the calculated and systematic manner in which they manipulated victims. The court heard how they exploited regulatory gaps to operate without proper oversight or licenses, using persuasive tactics to gain trust and extract money.
Sentences Handed Down, Confiscations Ongoing
Raymondip Bedi received a sentence of five years and four months. Patrick Mavanga was given six years and six months. These custodial terms reflect the severity of their roles and the scale of the losses incurred by victims.
Beyond the prison terms, the court confirmed that confiscation proceedings are underway. These efforts aim to recover funds obtained through the fraudulent operation. The process, managed through the Proceeds of Crime Act, is designed to return as much money as possible to the victims.
The FCA has not released details about the two additional individuals charged in connection with the scheme, and it remains unclear whether further prosecutions or sentencing will follow.
Rising Threat of Crypto Scams in the UK
This case adds to a growing number of crypto-related frauds being prosecuted in the UK. The combination of public interest in cryptocurrency and limited understanding among retail investors has made the sector an attractive target for fraudsters.
The FCA and other regulators have issued repeated warnings about unregistered firms offering crypto investments, especially those involving unsolicited calls and promises of unusually high returns. Despite these alerts, fraud reports have continued to rise.
As part of its broader fintech oversight, the FCA has taken steps to enhance consumer protection. This includes publishing a list of firms that are not authorised to provide investment services and requiring clearer disclosures from companies operating in the digital finance space.
A Message to Investors and Industry
The sentencing of Bedi and Mavanga sends a clear message: authorities are prepared to act decisively against those who abuse public trust in emerging financial markets. While the technology behind cryptocurrency is evolving, the tactics used by scammers often rely on old methods — charm, pressure, and misdirection.
For the fintech industry, the case highlights the importance of compliance and transparency. As interest in crypto assets continues, firms operating legitimately must differentiate themselves from schemes that damage public confidence.
The FCA’s decision to lead the prosecution signals a stronger approach to enforcement, particularly in complex fraud cases involving digital assets. It also underlines the regulator’s growing role not just in oversight, but in legal accountability.
Looking Ahead
While Bedi and Mavanga will now serve their sentences, the aftermath of their scheme continues. Many victims may never fully recover their losses, even with confiscation proceedings underway. The psychological toll of fraud, especially when it involves personal savings or retirement funds, cannot be underestimated.
At the same time, this case may help prompt wider public awareness. Investors are urged to verify the credentials of firms before engaging in any investment and to remain skeptical of unsolicited financial offers, particularly those involving cryptocurrency.
The UK government has signaled that further legislative action may be necessary to strengthen regulation in this space. Meanwhile, the FCA continues to warn consumers against unregulated crypto activity and encourages reports of suspected scams.
