Three men jailed in London over £4 million fake-police cryptocurrency fraud

How the fraud worked

According to the Metropolitan Police, Anthony Ikenwe, 29, Kevin Nwamma, 25, and Hamza Bashir, 23, contacted cryptocurrency holders and falsely warned them that their assets were at risk unless they were moved into accounts supposedly controlled by police. Victims were directed to bogus police websites designed to make the calls appear legitimate.

Eight people either handed over account information or transferred digital assets directly, resulting in losses of more than £4 million, about $5.4 million. Investigators said the group did not hack wallets or blockchain systems. Instead, they relied on impersonation and fabricated official-looking online material to exploit trust.

Police said the funds were then moved through a laundering chain and largely converted into prepaid payment cards used for routine spending.

Investigation traced links across cases

The inquiry began in January 2025 after victims reported the fraud. Detectives said they examined blockchain transactions alongside exchange data, emails and other communications, banking records, and internet service provider logs. Those enquiries linked what had initially appeared to be separate fraud incidents through shared aliases, phone numbers, websites, and cryptocurrency wallets.

Detective Inspector Geoff Donoghue of the Met’s Cryptocurrency Team said officers had “painstakingly traced millions of pounds” using a range of investigative methods to break up what police described as a significant criminal network.

Investigators also pointed to spending patterns they said were inconsistent with the suspects’ declared means. One defendant reportedly claimed annual earnings of £444, while the group was linked to a nearly £60,000 car bought with cryptocurrency, around £500,000 in cash held in a Dubai safety deposit box, and international travel including trips to Thailand, Japan, Paris, Mykonos, the Maldives, and the Seychelles. Police also recovered Rolex watches and other luxury goods worth more than £26,000, and said the group made frequent purchases at Harrods, Hermès, and Louis Vuitton.

Arrests, pleas and seizures

On November 20, 2025, law enforcement carried out coordinated operations at seven locations across London and in Essex. Officers seized mobile devices, cryptocurrency, and luxury items. Since then, police said they have recovered more than £1 million believed to be connected to the fraud.

Ikenwe and Nwamma pleaded guilty in April. Bashir denied involvement at first but admitted his role on the eighth day of trial. The Metropolitan Police said Ikenwe and Nwamma were each sentenced to six years for conspiracy to defraud, with concurrent sentences for money laundering. The source article, citing The National, said their total terms amounted to at least 11 years each. Bashir received a shorter sentence for conspiracy and money laundering.

Regulatory pressure builds

The sentencing comes amid broader efforts by UK authorities to justify stronger digital-asset controls. The source article said law enforcement and regulators are using cases like this to support stricter registration requirements, wider powers to trace blockchain transactions, and closer cooperation with exchanges.

The article also linked the case to wider official concern over illicit crypto flows. It cited TRM Labs as estimating $158 billion in illicit cryptocurrency transactions in 2025, up 145% from the prior year, while Chainalysis had estimated $40.9 billion for 2024 and projected more than $51 billion for 2025. In a separate 2025 operation, cooperation between the Met and the Financial Conduct Authority led to the removal of seven crypto ATMs. At the time, FCA enforcement director Therese Chambers said there were no legally operated crypto ATMs in the UK under the country’s registration rules.

The Metropolitan Police said it is still working with agencies in the UK and overseas to identify others tied to the conspiracy and recover more stolen assets.