Bitcoin Bust Leads Queensland Police to Serial Scammer Peter Foster

Serial scammer Peter Foster was arrested on Thursday by Queensland police officers in relation to a multi-million dollar international sports betting scam. Bitcoin transactions have been identified as key evidence used by international cybercrime investigation and asset recovery IFW Global to implicate Foster in the scheme. 

Foster, a convicted conman who has served multiple sentences for fraud worth millions of dollars in damages in Australia, the United Kingdom, the United States of America and Vanuatu, was identified using a currency whose trail cannot be erased no matter how hard one might try – Bitcoin.

Foster allegedly established a company named Sports Predictions, offering gambling services and receiving sporting bets — which, complaints state, were never placed. This company attracted plenty of high rolling bettors – including an as yet undisclosed Asian businessman who claims to have lost around two million dollars in bets that were never placed.

IFW Global’s investigation into Foster’s alleged betting scam indicates that Foster may have received over $2 million in payments for bets that were never executed, with funds diverted and laundered in NSW. Statements issued by the NSW police indicate that the state police force will apply for Foster’s extradition to NSW and expects to charge the sports betting platform operator with multiple fraud offenses. 

Serial Scammer Identified Through Blockchain Records

Transactions made through a blockchain are irreversible and visible to anyone, allowing investigators to trace the transaction in order to discover an attempt at laundering the money through New South Wales.

Information passed through Queensland Police by IFW global included an attempt made by Foster to purchase a luxury moto yacht for over $1 million AUD, along with Bitcoin transaction data provided by an unnamed IFW client to private investigator Ken Gamble, chairman of IFW Global.

The use of blockchain technology to identify and arrest criminals is a growing trend, with Australian federal police now able to access deeper and more detailed information regarding cryptocurrency transactions. 

New initiatives launched by the Australian Federal Police will see officers posted around the world in order to establish a global net aimed at eliminating international scammers. More recently, a 52-year old Sydney woman was arrested for laundering over $5 million in cryptocurrency — the Australian Government’s new $1.6 billion cybersecurity strategy aims to eliminate scammers and cryptocurrency fraud both from within Australian borders and abroad.