Identity Fraud in Crypto Exchange Sign-Ups

Identity Fraud in Crypto Exchange Sign-Ups

Good day everyone,

I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent story of an Australian man being handed a two year prison sentence for crypto exchange identity fraud.



Crypto Identity Fraud

On the 21st of June, 2024, an Australian man received a two-year prison sentence for cyber-enabled identity fraud, according to a report by the Australian Federal Police (AFP). They noted that the fraud involved the creation of online cryptocurrency accounts using counterfeit documents, while also stating that the 31-year-old Aussie man was sentenced at the Melbourne County Court.

The case came about after a complaint from a victim in New South Wales about an unauthorised bank account creation. This report was made to Report Cyber, an Australian Commonwealth Government site for cybercrime reporting. The AFP inquiries discovered that the perpetrator used fake driver’s licenses, with real victims’ details and his photo, to create accounts on two different cryptocurrency exchanges.

This followed on from an international investigation into a website selling fraud-enabling technology, which enabled a theft totalling over $670,000 from victims. It was called “Operation Stonefish” by the AFP and they initiated this back in August 2022. A UK investigation followed into a website that offered spoofing services, for as little as $25. When a user subscribed they would be allowed to conduct fraudulent activities. The site facilitated services such as making robo-calls, sending one-time pins, and employing other deceptive services to facilitate scams.

Australia has been revealed as a popular target for users of the website and this has led authorities to collaborate in an effort to identify the victims of the site. Two individuals were arrested as a result of this, according to a separate AFP report. The AFP Constable Josh Simpson highlighted the rise in “Cybercrime-as-a-service” for criminals to purchase online. This basically means anybody with a computer and internet access can commit crimes like identity fraud and theft easily. 

Back in November 2022 AFP officers searched the man’s home in Boronia and seized blank and fake drivers licenses, a lost passport, and cards in other people’s names. On his computer they also discovered messages on an encrypted messaging platform discussing identity crime and creating false documents. The perpetrator faced multiple charges under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Criminal Code. This included providing false information, handling proceeds of crime, and possessing false documents. He was handed down a two year prison sentence with a non-parole minimum of 10 months.



Have a great day.

Peace. CryptoGod-1.


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CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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