The Recovery of the “Gold-Backed” Token Scam (2024)

A group of retirees in Australia lost a combined $5 million AUD to a scam claiming to sell cryptocurrency backed by physical gold reserves.

  • The Scam: Victims were shown fake dashboards displaying “gold bars” held in vaults. In reality, the money was being funneled into luxury real estate.
  • The Recovery: The Australian Federal Police (AFP) tracked the fiat-to-crypto gateways used by the scammers. They obtained a “Restraint Order” under the Proceeds of Crime Act. By freezing the scammers’ bank accounts and seizing their crypto cold wallets during a synchronized raid, the AFP recovered roughly 80% of the initial investment for the victims.

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