FCA Secures £851,000 for Victims of £1.5 Million Crypto Fraud
The recovery of stolen or fraudulently obtained cryptocurrency and investment funds can be one of the most difficult stages of a financial-fraud case. A victim may obtain evidence, report the matter to law enforcement and even see the perpetrators prosecuted, but that does not necessarily mean the lost money will automatically come back.
A recent case in the United Kingdom illustrates an important part of that process.
On 28 September 2026, the UK Financial Conduct Authority (FCA) announced that it had obtained confiscation orders against Raymondip Bedi and Patrick Mavanga following a fraudulent cryptoasset investment scheme that caused at least 65 investors to lose approximately £1.54 million.
At a hearing at Southwark Crown Court, Bedi was ordered to pay £603,404.28, while Mavanga was ordered to pay £247,997.99. Together, the orders amount to £851,402.27.
The FCA has stated that it has identified and contacted affected victims and will ensure that money recovered through the confiscation process is returned to victims.
What happened in the crypto fraud?
According to the FCA, Bedi and Mavanga operated the fraudulent investment scheme between February 2017 and June 2019.
The scheme involved cold-calling consumers and persuading them to invest in purported cryptocurrency opportunities through companies including CCX Capital and Astaria Group LLP.
At least 65 investors were defrauded, with total losses reported by the FCA at £1,541,799.
This is an important reminder that crypto fraud does not necessarily take the form of a sophisticated blockchain hack.
Traditional investment-fraud techniques can be combined with the language and technology of cryptocurrency. Cold calls, investment presentations, company websites, apparently professional representatives and claims about cryptocurrency opportunities can all be used to persuade victims to transfer money.
That makes due diligence particularly important.
Conviction is not the same as recovery
One of the most important legal points arising from this case is the distinction between criminal punishment and asset recovery.
The FCA previously prosecuted Bedi and Mavanga. In July 2025, Bedi received a sentence of 5 years and 4 months' imprisonment, while Mavanga received 6 years and 6 months' imprisonment for their roles in the scheme.
Those prison sentences addressed the criminal conduct.
The subsequent confiscation orders address another question:
How much money or value can legally be recovered from the offenders?
Under the Proceeds of Crime Act 2002, confiscation orders require offenders to repay the benefit obtained from criminal conduct or the value of their available assets, whichever is lower.
This distinction matters greatly in cryptocurrency fraud cases.
A successful prosecution does not automatically establish that every victim will immediately receive 100% of their loss. Authorities may still need to identify assets, establish recoverable value and complete the relevant confiscation and distribution procedures.
How much money is being recovered?
The two confiscation orders total:
Raymondip Bedi — £603,404.28
Patrick Mavanga — £247,997.99
Combined confiscation orders — £851,402.27
The underlying fraud, however, involved approximately £1.54 million in investor losses.
Therefore, the confiscation orders do not represent the entire amount originally lost by investors.
That is an important distinction when discussing crypto recovery publicly. A headline stating that authorities have “recovered the money” can sometimes create the impression that victims have already received all their losses. In this case, the FCA says the orders bring victims closer to getting their money back and that recovered funds will be returned through the confiscation process.
FinanceFeeds similarly reported that the confiscation orders exceeded £851,000 and that the recovered funds are intended to be returned to affected victims.
What happens if the offenders do not pay?
The confiscation orders also have enforcement consequences.
The FCA states that if the defendants fail to pay within three months, Bedi could face up to an additional five years in prison, while Mavanga could face up to two years.
This demonstrates that a confiscation order is not simply a voluntary request for repayment. It is part of the statutory proceeds-of-crime framework.
For victims, that distinction is significant because asset recovery often requires legal mechanisms beyond the original criminal conviction.
What does this mean for crypto-fraud victims?
From a legal perspective, this case highlights several practical lessons.
1. Report fraud as early as possible
A victim should preserve evidence and report suspected fraud promptly.
Relevant evidence can include:
Wallet addresses
Transaction IDs or TXIDs
Exchange records
Bank-transfer records
Emails and messages
Telegram or WhatsApp communications
Investment agreements
Screenshots
Website addresses
Promotional material
Names and details of individuals involved
Statements made about licensing or regulation
The earlier investigators can identify the flow of funds, the more useful the evidence may become.
2. Blockchain transactions can provide evidence
Cryptocurrency transactions generally leave a transaction history on the relevant blockchain.
That does not mean that recovering cryptocurrency is easy. Funds can move through multiple wallets, exchanges, bridges, mixers or other services.
Nevertheless, blockchain transaction data can become an important evidentiary trail when combined with conventional financial and investigative evidence.
3. Exchange cooperation can matter
Where stolen or fraudulently obtained cryptocurrency eventually reaches a centralized exchange or another identifiable intermediary, legal or law-enforcement processes may become relevant.
Depending on the jurisdiction and circumstances, preservation requests, information requests, court orders or cooperation with investigators may be available.
The precise mechanism depends on the facts and applicable law.
4. A victim should distinguish legitimate recovery from recovery scams
Crypto-fraud victims are particularly vulnerable to secondary scams.
After losing cryptocurrency, a victim may be contacted by someone claiming to be a hacker, investigator, recovery agent, lawyer, blockchain expert or government representative who promises to retrieve the funds in exchange for an upfront payment.
A victim should independently verify the identity, authority and legal basis of anyone claiming to have recovered assets.
A promise of guaranteed cryptocurrency recovery should be treated with particular caution.
Why the FCA case matters beyond the United Kingdom
The case is also relevant to the wider international digital-asset industry.
Crypto investment fraud frequently crosses borders. A victim may live in one country, send money to another country, interact with a company registered in a third jurisdiction and ultimately see cryptocurrency transferred through wallets and exchanges located elsewhere.
This creates a jurisdictional problem.
The investigation may involve:
victim jurisdiction → banking jurisdiction → company jurisdiction → exchange jurisdiction → blockchain evidence → criminal enforcement → asset confiscation.
That is why international cooperation can become important in serious crypto-fraud matters.
The FCA's action also demonstrates that cryptocurrency does not place alleged fraud outside the reach of conventional financial-crime laws. Digital assets may be used as part of the scheme, but regulators and criminal courts can still use established enforcement and proceeds-of-crime mechanisms where applicable.
A lesson for crypto investors
The most important lesson is not simply that regulators can recover money after fraud.
It is that prevention and evidence preservation remain critical.
Before sending funds to a crypto investment platform or promoter, investors should investigate the entity behind the opportunity, verify regulatory status where relevant, examine the terms and conditions, understand where funds are being sent and be cautious about unsolicited approaches.
Once money has been transferred, the legal options can become considerably more complicated.
A lesson for crypto lawyers and recovery professionals
For lawyers working in digital-asset disputes, cases such as this demonstrate why crypto recovery should not be viewed simply as a blockchain-tracing exercise.
A proper recovery strategy may require a combination of:
Blockchain analysis + financial investigation + evidence preservation + regulatory reporting + criminal-law processes + asset-freezing mechanisms + cross-border cooperation.
The blockchain may show where cryptocurrency moved, but identifying a wallet does not automatically identify the person controlling it, establish criminal liability or create a legal right to recover the assets.
Those questions require evidence and appropriate legal procedures.
Conclusion
The FCA's latest action provides a concrete example of how confiscation proceedings can become an important stage in the recovery of money lost through crypto investment fraud.
Bedi and Mavanga were convicted and sentenced in 2025. In September 2026, the FCA obtained confiscation orders totaling £851,402.27, and the regulator has stated that recovered funds will be returned to identified victims.
The case also shows why victims should not assume that a criminal conviction automatically means immediate repayment. Recovery can require a separate legal and investigative process involving the identification and enforcement against recoverable assets.
For victims of cryptocurrency fraud, preserving evidence, reporting the fraud promptly and obtaining appropriate legal advice can be important steps in determining what recovery mechanisms may be available.
Secondary report: FinanceFeeds – FCA Secures £851,000 Recovery Orders for Victims of £1.5M Crypto Fraud
Disclaimer
The information provided in this article is intended for general informational purposes only and should not be construed as legal or financial advice. Readers are encouraged to seek independent professional counsel tailored to their specific circumstances.
Author & Crypto Consultant
Shahid Jamal Tubrazy – Crypto & Fintech Law Consultant
Shahid Jamal Tubrazy is a recognized professional in the field of cryptocurrency and blockchain law, with specialized certification in Crypto Law from Duke University. As an experienced fintech lawyer, he provides comprehensive legal services across the digital asset ecosystem, including regulatory licensing, legal structuring for ICOs, STOs, DeFi projects, and DAOs.
He also offers expertise in crypto dispute resolution, mediation, negotiation, and mergers & acquisitions within the blockchain sector. With a strong portfolio of published work on blockchain regulation and cryptocurrency law, Shahid delivers practical legal insights to help clients navigate complex regulatory landscapes, ensure compliance, and achieve strategic growth in the evolving fintech industry.
📧 Email: cryptolawyer@cryptolawconsult.com
🌐 Website: https://cryptolawconsult.com/
🔗 LinkedIn: https://www.linkedin.com/in/shahidtubrazy/
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