- Cryptocurrency Scam
- Cybercrime Australia
- Investment Fraud
NSW Cybercrime Squad has charged a man under Strike Force Resaca for a $5 million cryptocurrency investment scam that defrauded over 190 vulnerable Australians since November 2025.
NSW Police Crack Down on $5 Million Cryptocurrency Investment Scam
The NSW Cybercrime Squad has charged a 42-year-old man in connection with a large-scale cryptocurrency investment scam that allegedly defrauded more than 190 elderly and vulnerable Australians out of approximately $5 million. The arrest was made under Strike Force Resaca, a dedicated operation established by the State Crime Command's Cybercrime Squad in February 2026 to dismantle the criminal network behind the scheme.
According to investigators, the scam had been operating since November 2025, using sophisticated social engineering tactics to lure victims into depositing their savings into a fraudulent digital currency exchange platform known as NEXOpayment.
How the Crypto Investment Scam Operated
The scam followed a carefully orchestrated pattern designed to build trust and exploit victims over time. Targets were initially contacted through social media platforms, where they were encouraged to explore cryptocurrency investment opportunities that promised attractive returns.
Once a victim showed interest, they were passed on to an individual posing as a professional investment advisor. This fake advisor would guide them through the process of depositing funds into the NEXOpayment web portal, a platform that appeared to function as a legitimate digital currency exchange.
Victims genuinely believed they were purchasing cryptocurrency, shares, or other recognised investment products. However, investigators allege that the funds deposited into NEXOpayment were never invested at all. Instead, the money was systematically redirected through a complex web of cryptocurrency wallets and digital currency exchanges in a pattern consistent with money-laundering activity.
Strike Force Resaca: Arrests and Search Warrants
Following extensive inquiries, Strike Force Resaca detectives executed two search warrants on Friday, 20 February 2026, beginning at 7.30am. The warrants targeted residential properties in Strathfield and Cammeray, as well as a business premises in Burwood, all located in the Sydney metropolitan area.
During the execution of the warrants, police seized electronic devices and documentation considered relevant to the ongoing investigation into the fraudulent scheme.
At the Strathfield address, officers arrested a 42-year-old man. He was transported to Auburn Police Station, where he was formally charged with recklessly dealing with proceeds of crime exceeding $5,000. The charge relates specifically to the alleged laundering of funds through the NEXOpayment platform during the period of the scam's operation. The man was granted conditional bail and is scheduled to appear before Burwood Local Court on Tuesday, 17 March 2026.
A second man, aged 36, was arrested at the Cammeray property. He was taken to Chatswood Police Station for questioning before being released pending further inquiries. No charges have been laid against the second individual at this stage.
Investment Scams Remain the Costliest Form of Cybercrime in Australia
The Commander of the Cybercrime Squad, Detective Acting Superintendent Jason Smith, highlighted the enormous financial toll that investment scams continue to inflict on the Australian community. He noted that investment fraud remains the single highest loss category of cybercrime across the country, costing Australians hundreds of millions of dollars each year.
Det A/Supt Smith described the offenders behind these schemes as highly organised, sophisticated, and relentless in their efforts to target victims. He explained that criminals routinely make contact through social media, text messages, and unsolicited phone calls, often promising guaranteed or unrealistic returns on investment to draw people in.
A key tactic used by scammers involves creating a sense of urgency, pressuring potential victims to transfer funds quickly and exploiting a fear of missing out on lucrative opportunities. Det A/Supt Smith stressed that this kind of high-pressure approach should immediately be treated as a major red flag.
How to Protect Yourself from Cryptocurrency Scams
In the wake of this investigation, authorities have issued clear guidance for Australians who may be considering any form of investment, particularly those involving cryptocurrency or digital assets. The following steps can significantly reduce the risk of falling victim to a scam:
- Take your time and never rush into an investment decision, regardless of how urgent the opportunity may seem. Scammers rely on pressure tactics to prevent victims from thinking critically.
- Verify the legitimacy of the company or platform before transferring any money. Check that the business is registered in Australia and holds the appropriate licences to offer financial products or services.
- Consult a trusted friend, family member, or qualified financial professional before committing any funds. An independent perspective can help identify warning signs that may not be immediately obvious.
- Be wary of unsolicited contact through social media, text messages, or phone calls that promote investment opportunities with guaranteed or unusually high returns.
- Research the platform thoroughly. Look for independent reviews, verify the website address, and check whether the platform has been flagged on scam alert databases maintained by the Australian Competition and Consumer Commission or the Australian Securities and Investments Commission.
- Report suspicious activity immediately. The sooner a potential scam is reported, the greater the chance that authorities can intervene and prevent further financial harm to others.
How to Report Cybercrime in Australia
Anyone who believes they may have been a victim of a cryptocurrency scam or any other form of cybercrime is encouraged to report the incident through ReportCyber at cyber.gov.au or by contacting their local police station. Early reporting is critical, as it allows law enforcement agencies to act swiftly and potentially recover lost funds or prevent additional victims from being targeted.
Members of the public who have information that could assist ongoing investigations into investment scams are urged to contact Crime Stoppers on 1800 333 000. All information provided to Crime Stoppers is treated on a strictly confidential basis. Authorities have reminded the public not to report crime-related information through NSW Police social media pages.
This case serves as a stark reminder that cryptocurrency investment scams are growing in both scale and sophistication across Australia. Staying informed, exercising caution, and verifying every opportunity before parting with your money are the most effective defences against becoming a victim.