Sunshine Coast crypto fraud loses man $100k

A Sunshine Coast man has been scammed out of $100,000, as police issue a stern warning to potential cryptocurrency investors.

A Sunshine Coast man has been scammed out of more than $100,000 after he invested in fake cryptocurrency.

The 54-year-old man invested $50,000 into an online cryptocurrency platform in October, 2021, under the impression he would make profit from the legitimate platform.

However, the account had been set up by scammers who led victims to believe the trades and profits were genuine.

It comes as two Sunshine Coast men shared how they used Bitcoin investments to purchase a $1m sports company.

Police said in a statement on Friday the man was told he could not draw on the false profits for 12 months.

He then invested another $50,000 into the scheme six months after the first investment, under the belief he would reach a “platinum investor membership” on the platform.

Sunshine Coast Criminal Investigation Branch Detective Senior Sergeant Craig Mansfield said in a press conference on Friday some of the man’s money had ended up in a digital wallet holding $3bn.

However, it was extremely unlikely anyone would be charged over the fraud, he said.

“There is no entities attached to any of these accounts … it’s completely anonymous,” he said.

“It’s akin to posting your ATM card to a stranger on the other side of the world and saying ‘here is my PIN number, go to town’.”

Police have warned potential cryptocurrency investors to be vigilant while using the digital platform.

Sergeant Mansfield said cryptocurrency platforms were ideal for organised crime groups due to potential investors’ lack of knowledge.

“People are engaging with other people online who are offering services to set up cryptocurrency accounts for them or on their behalf, and effectively people are depositing large sums of money into that and it’s never to be seen again,” he said.

“If you’re going to effectively deposit $100,000 into this, spend a couple of hundred (dollars) getting advice from someone you can speak to (in person).”

Police said anyone investing in cryptocurrency should be aware of several red flags, including being told you won’t have access to your funds for a set period, offers to set up your Crypto Wallet for you, investment levels with terms such as “Silver”, “Platinum” or “Gold”.

But overall, police warned if it seems too good to be true, it probably is.