In a landmark case that has underlined the risk of unauthorized crypto schemes, the UK’s Financial Conduct Authority has prosecuted two men, Raymondip Bedi and Patrick Mavanga, for orchestrating a £1.5 million cryptocurrency fraud. 

Bedi and Mavanga swindled at least 65 investors with the promise of high returns through fraudulent investment platforms, renewing calls for vigilance within the financial community. From February 2017 to June 2019, the pair targeted unsuspecting investors through cold calls, guiding them to professional-looking websites that advertised lucrative crypto investment opportunities. These platforms, however, were fronts for siphoning funds under the guise of high-yield returns. By leveraging cold-calling tactics and polished online interfaces, they convinced victims that their investments were secure, only to pocket the money themselves later.

Source: FCA

The Financial Conduct Authority brought the case against Bedi and Mavanga to Southwark Crown Court, where they both pleaded guilty to multiple charges. These included conspiracy to defraud, breaching the Financial Services and Markets Act 2000, and money laundering offenses. Mavanga faced additional charges, including possessing false identification documents and perverting the course of justice by deleting phone recordings after Bedi’s arrest in March 2019. Both of them operated through businesses named CCX Capital and Astaria Group LLP, which were critical to executing their scheme.

FCA’s Advisory and Support for Victims

FCA has already contacted those affected by this scam and has invited any victims who haven’t come forward yet for assistance. Following this matter, the regulator issued a public warning to treat unsolicited investment offers with skepticism. Steve Smart, FCA’s joint executive director of enforcement, underlined that an investment opportunity that looks “too good to be true” is a scam and advised consumers to avoid suspicious offers.

The trial also implicated other individuals. A third defendant will face a retrial in September 2025 after the jury was unable to reach a verdict. Another individual, Rowena Bedi, was acquitted of money laundering charges, and a further suspect, Minas Filippidis, remains wanted by authorities in connection with the case. Sentencing for Bedi and Mavanga is scheduled to occur at a later date, and the FCA has pledged ongoing support for any investors still affected.

Broader Context: Crypto Fraud and Regulatory Challenges

This prosecution is part of the FCA’s increased crackdown on fraudulent activity in the digital currency sector. The regulator has significantly tightened its grip to ensure far stricter requirements for financial marketing and consumer safety. In its 2024 report, the FCA said about 87% of crypto firms seeking to be registered in the UK failed the threshold because of serious deficiencies in AML and fraud protection.

The “financial promotion perimeter” imposed by the FCA, effective June 2023, would make crypto ads meet high standards of clarity and transparency to protect people from misleading claims. In addition, awareness campaigns, such as ScamSmart, help the public understand how to identify and avoid scams, which have increased exponentially with the rise in crypto popularity. The FCA said it had witnessed a significant rise in consumer awareness over the past year, with people increasingly checking their investments before parting with their money.

Apart from crypto schemes, another recent focus area for the FCA is high-risk investment promotions put out by social media influencers, or “finfluencers.” This campaign has involved issuing warnings and taking legal action against online personalities promoting unlicensed financial products to vast audiences.