Key Takeaways
- Karl Johnson, 35, received three years for assisting in the robbery, and Scott Armstrong, 39, was jailed for two years and four months for transferring criminal property.
- The gang targeted a crypto holder forcing him to transfer over £100,000 ($124,152) worth of crypto.
Seven individuals involved in a violent cryptocurrency extortion scheme have been sentenced to prison in the UK, following a harrowing case that underscores the risks faced by digital asset investors. The gang targeted a crypto holder over nearly a year, subjecting him to repeated kidnappings, physical assaults, and threats, ultimately forcing him to transfer over £100,000 ($124,152) worth of crypto.
On January 30, 2024, the seven gang members were sentenced at Manchester Crown Court. Jonathan Newns, 24, and David Povey, 34, each received 20-year prison terms for charges including robbery, kidnapping, and possession of a firearm.
Luke Johnson, 25, was sentenced to 13 years and six months for similar offenses. Gary Edwards, 47, received 10 years and two months for attempted robbery, while Kane Godiff, 33, was sentenced to seven years and five months. Karl Johnson, 35, received three years for assisting in the robbery, and Scott Armstrong, 39, was jailed for two years and four months for transferring criminal property.
As per reports, the incident dates back to January 2023 when he was confronted at his home by a man demanding crypto. Fearing for his safety, the victim complied and transferred funds to one of the gang members, Scott Armstrong. Later that month, another gang member, David Povey, along with an accomplice, returned armed with a knife and forced the victim to hand over more crypto. Despite meeting their demands, the victim continued to be targeted by the group.
In October 2023, the gang lured the victim to an apartment under false pretenses. Once there, he was tied up, beaten, and locked in a cupboard overnight. When he was unable to immediately transfer the demanded funds, another gang member, Kane Godiff, threatened to kill him. After hours of violence, the gang released the victim only after receiving the cryptocurrency they had demanded. Just days later, the gang abducted him again, placing a bag over his head and subjecting him to further threats and physical abuse.
The final attack occurred on November 30, 2023, when Gary Edwards, a key member of the gang, abducted the victim from a friend’s house. He was forced into a van, had his head covered, and was taken to another location. On December 2, police received an anonymous tip and located him at a house. Officers found him with burn marks, bruises, and injuries from being beaten with weapons. They also discovered a cache of weapons, including a gun, machetes, knives, and restraints, which were used during the attacks.
This case sheds light on the increasing threats faced by crypto investors, who are often targeted due to the perceived anonymity and irreversibility of crypto transactions. According to blockchain analytics firm Chainalysis, ransomware gangs extorted over $1.1 billion in crypto payments in 2023 alone.
