ASIC charges four in major crypto laundering case linked to fake bonds; victims misled, funds moved offshore and into cryptocurrencies.
In a major legal development, the Australian Securities and Investments Commission (ASIC) has charged four men in Victoria with crypto laundering. Among the accused is a former barrister. They are accused of assisting in the movement of money made off of a massive fake investment scheme into cryptocurrency exchanges.
ASIC Alleges Crypto Laundering Tied to Fake Bonds Scheme
As the official statement of ASIC released on Thursday said, the alleged crimes were committed in January 2021. It is alleged that during this time, Dimitrios (James) Podaridis, Peter Delis, Bassilios (Bill) Floropoulos, and Harry Tsalikidis transferred money associated with fraudulent investment operations.
The case focuses on an elaborate fraud that involved selling fraudulent bonds and investment products to Australians without their knowledge. The four men did not directly run the so-called scam. However, ASIC asserts that they dealt with funds that were proceeds of the crime, and it was reckless on their part to know that the money was criminal in nature.
The scammers reportedly used bogus investment comparison websites and online advertisements to attract investors. Such ads, which are mostly found on Facebook, invited victims who were subsequently reached either via email or phone. Subsequently, they were given fake documents, including bogus prospectuses, to the victims. Legitimate financial institutions issued similar documents with strong branding and professional layouts.
Related Reading: Australian Police Bust $123 Million Crypto Laundering Network
The spurious investments provided fixed returns that amounted to 4.5 to 9.5 percent annually. They would invest between one and ten years. ASIC claimed that the victims moved money into Australian bank accounts belonging to Podaridis, Floropoulos, or Delis. Afterward, the money was either transferred to offshore banks or exchanged into cryptocurrencies via digital exchanges.
Furthermore, the ASIC claims that Harry Tsalikidis was the key player because he assisted, counselled, and helped the other three accused to transfer the funds. Although it is not claimed that he committed the fraud, he is claimed to have assisted in the laundering of the money.
Crypto Crime Case to Face Committal Hearing in October
The ASIC opened the investigation following the complaints made by several individuals, businesses, and institutional investors. Most of the victims had been led to believe that they were taking safe investments. But their funds were being circulated through the system, which ended up in the form of digital assets and overseas accounts.
The case reflects increasing fears regarding cryptocurrencies in financial crimes. With more digital assets going mainstream, regulators are making more efforts to monitor suspicious transactions and prevent consumers from fraud.
The case will have a committal mention on 30 October 2025. The hearing aims to decide if there is enough evidence to take the case to trial. The case is now being conducted by the Commonwealth Director of Public Prosecutions after a formal referral by ASIC.
Over the past years, Australia has strengthened its regulation of the crypto industry. The case can also hasten the demand for stricter regulation and consumer awareness. It is a major challenge to the way law enforcement agencies deal with financial crime in the era of digital assets, as it proceeds in the courts.
