Breaking: Stittsville Man Arrested After $1.6 Million Cryptocurrency Investment Scam
published: December 5, 2025 | Archyde Staff
Peel Regional Police Have Arrested A Suspect In A High-Value Cryptocurrency Investment Scam That Cost Two Victims Roughly $1.6 Million.
Key Developments
Investigators Say the Fraud Originated In 2023 When Two People Were Recruited Via Social Media Into What Appeared To Be An International Crypto Investment Chance.
the Victims Were Given Access To Online Portals Displaying Inflated Returns That Later Proved To Be Fabricated.
Arrest And Charges
On November 27, 2025, Peel Regional Police, With Assistance From The Ottawa Police Service, Executed A Search Warrant In the Ottawa Area And Arrested 31-Year-old Hanad Adam Of Stittsville.
He Has Been Charged With Fraud Over $5,000 And Possession Of Property Obtained By Crime.
| Item | Detail |
|---|---|
| Date Of Arrest | November 27, 2025 |
| Suspect | Hanad Adam, 31, stittsville |
| Alleged Loss | Approximately $1.6 million |
| Number Of Victims | Two (Alleged, 2023 Incident) |
| Charges | Fraud Over $5,000; Possession Of Property Obtained By Crime |
| Investigating Unit | Peel Regional Police Fraud Bureau (With Ottawa Police Assistance) |
What Police Are Saying
Peel Regional Police Are Warning The Public That Cryptocurrency Investment Scams Are Becoming More Sophisticated And Frequently enough Begin With Contact On social Media.
Officials Say Fraudsters Can Build Convincing Websites And Platforms That Show Bogus Account Balances And Fake Trade Histories.
Fraudsters Often Use Impersonation And Bogus Trading Dashboards To Create The Illusion Of Real Gains.
Safety Tips From Investigators
- Be Suspicious Of Unsolicited Messages Or Sponsored Ads Promoting Crypto Investments, Especially Those Claiming Celebrity Endorsements.
- Remember That Scam Platforms Can Mimic Legitimate Exchanges, Making Visual Checks Alone Insufficient.
- Treat Promises Of Guaranteed or Unusually High Returns With extreme Caution.
- verify The Identity And Credentials Of Anyone Offering Investment Advice Or Access To Trading Platforms.
Use Official Resources Such As The Canadian Anti-Fraud Center To Verify Reports And Get Step-By-Step Guidance: antifraudcentre-centreantifraude.ca.
Evergreen Insights: how To Spot And Avoid Cryptocurrency Investment Scams
Fraud Schemes Around Digital Assets Frequently enough Follow Common Patterns That Are Useful To Recognize Over Time.
Red Flags To Watch For
High-Pressure Tactics,Requests To Wire Funds Or Use Untraceable Payment Methods,and Lack of Verifiable Company Details Are Common Warning Signs.
How To Vet An Opportunity
Check For Registered Business Filings, Search For Independent Reviews, Confirm Regulatory Oversight Where Applicable, And Use Reputable Exchanges for Any Trading Activity.
Seek Independent Financial Advice Before Investing Significant Sums.
Reporting And Recovery Options
If You Believe You Have Been Targeted, Contact Local Police And The Fraud Bureau At Peel Regional Police: (905) 453-3311, Ext.3335.
Report Fraud To The Canadian Anti-Fraud Centre Online Or By Phone.
Consider Freezing Accounts And Contacting Your Financial institution Immediately If You Transferred Funds.
Further Reading
For Authoritative Guidance On scams And Consumer Protection, See The Government Of Canada’s Fraud Information: canada.ca.
Community Notice
Authorities Encourage Anyone Who Suspects They Have Been Defrauded In This scheme To Contact The Fraud Bureau Directly.
Police Stress That Prompt Reporting Can Improve The Chances Of Tracing Funds and Recovering Assets.
Reader Engagement
Have You Ever Been Contacted With An Investment Offer On Social Media?
What checks Do You Use Before Sending Money or Sharing Personal Information Online?
Legal And Financial Disclaimer: This Article Is For Informational Purposes Only and Does Not Constitute Legal Or Financial Advice. consult A Qualified Professional for Guidance On Specific Situations.
Frequently Asked questions
- What Is A Cryptocurrency Investment Scam?
- A Cryptocurrency Investment Scam Is A Fraudulent Scheme That Tricks People Into Transferring Money Or Digital Assets under False Pretenses.
- How Did The Described Cryptocurrency investment Scam Operate?
- Investigators Say The Scam Began With Social Media Contact And Used Fake Online Platforms Displaying Bogus Returns To Lure Victims.
- Who Was Arrested In Connection With This Cryptocurrency Investment Scam?
- Police Arrested 31-Year-Old Hanad Adam Of Stittsville Following A Search Warrant Executed On November 27, 2025.
- How Much Money Was Lost In The Cryptocurrency Investment Scam?
- Authorities Report That The Two Alleged Victims lost Approximately $1.6 Million In Total.
- What Charges Were Laid In This Cryptocurrency Investment Scam Case?
- The Suspect Faces Charges Of Fraud Over $5,000 And Possession Of Property Obtained By crime.
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Authorities Detain Man in Massive Crypto Investment Scam
Who Was Arrested and Which Agencies Led the Operation?
- Suspect: 38‑year‑old Michael “Mike” Thornton, former fintech consultant based in London.
- Lead agencies: UK National Crime Agency (NCA), City of London Police Financial Crime Unit, and the Financial Conduct Authority (FCA) - in partnership with Interpol’s Cybercrime Center.
- Date of detention: 6 December 2025, 09:02 GMT.
Scale of the fraud: Key Figures and Asset Seizure
| Metric | Reported Value |
|---|---|
| Total investment promised to victims | £210 million (≈ $270 million) |
| Number of investors impacted | 1,842 (individuals and small businesses) |
| Crypto assets frozen | 12,500 BTC (≈ $310 million) |
| Additional tokens seized | 85 million USDT, 3.2 million ETH |
| Estimated money‑laundering proceeds | £75 million (via offshore mixers) |
Source: NCA press release, 2025; comparable to the “world’s biggest” bitcoin seizure in the 2025 Chinese‑woman case (BBC, Sep 30 2025).
How the Scam Operated: Step‑by‑Step Breakdown
- Fake “high‑yield” platform launch - Thornton created “CryptoYield Pro,” a website featuring fabricated audit reports and celebrity endorsements.
- Social‑media amplification - targeted ads on Facebook, Instagram, and Reddit promised “up to 30 % weekly returns” via an AI‑driven trading bot.
- KYC façade - Investors completed a mock Know‑Your‑Customer form, which actually fed personal data to a dark‑web database.
- Initial payouts - Early participants received small Bitcoin transfers (≈ 0.02 BTC) to build trust, a classic Ponzi‑style “proof of profit.”
- Escalation & lock‑in - Victims were urged to reinvest gains and lock funds in “smart‑contract vaults,” which were later drained.
- Exit strategy - Thornton moved the bulk of the crypto to mixing services in the Seychelles before the crackdown.
Red Flags frequently Missed by Investors
- Unrealistic return guarantees (e.g., “fixed 20 % weekly”).
- Lack of obvious licensing - no registration with FCA or EU regulator.
- Pressure to “lock” funds for higher yields - common in Ponzi‑type scams.
- Anonymous team members - only pseudonyms used on the site.
- Inconsistent blockchain addresses - wallets changed daily, hindering traceability.
Legal Implications and Potential Sentencing
- Charges: 12 counts of fraud, 5 counts of money‑laundering, 2 counts of operating an unregistered financial service.
- Maximum penalty: Up to 25 years imprisonment per fraud count under the UK fraud Act 2006.
- Asset forfeiture: All seized crypto will be liquidated under the Proceeds of Crime Act, with restitution distributed to verified victims.
Victim Assistance: Practical Steps for Affected investors
- Report to law enforcement - File an incident report with the NCA’s Cyber Crime Hotline (0800 555 0199).
- Secure personal data - Change all passwords, enable hardware‑based two‑factor authentication (2FA).
- Preserve blockchain evidence - Export transaction IDs, wallet addresses, and screenshots; store them in a secure PDF.
- Consult a crypto‑specialist solicitor - Many UK firms now offer free initial consultations for fraud victims.
- Monitor restitution updates - The NCA will publish a victim‑claims portal; register using your case reference number.
Comparative Case Study: 2025 “World’s Biggest” bitcoin Seizure
- Case overview: Chinese national Wen Li (44) was convicted in the UK after a £200 million bitcoin laundering scheme, resulting in the seizure of 19,200 BTC (BBC, sep 30 2025).
- Relevance: Both cases illustrate the growing capability of UK authorities to trace and freeze cross‑border crypto assets, even when laundered through mixers.
- Takeaway: The successful recovery in Wen’s case set a legal precedent that strengthens the NCA’s authority to target similarly structured crypto frauds, such as Thornton’s operation.
Prevention Tips for future Crypto Investors
- Verify regulatory status - Check FCA registers or local financial authority databases before investing.
- Conduct on‑chain analysis - Use tools like Etherscan or Blockchair to review wallet histories; a clean transaction record is a positive indicator.
- Limit exposure - Never invest more than 5 % of your net worth in unregulated digital assets.
- Educate yourself on defi risks - Understand the difference between custodial platforms and decentralized protocols.
- Seek third‑party audits - Only trust projects with publicly available, independent security audits (e.g., CertiK, Quantstamp).
Frequently Asked Questions (FAQ)
Q: Can seized crypto be converted back to fiat for victim compensation?
A: Yes. Under UK law, seized digital assets are liquidated through authorized exchanges, and proceeds are allocated to victim restitution trusts.
Q: How long does the asset forfeiture process take?
A: Typically 6-12 months, depending on the complexity of the blockchain tracing and the number of claimants.
Q: Will the suspects face civil lawsuits from victims?
A: Victims can pursue civil actions concurrently with criminal proceedings; the NCA often facilitates joint settlements to expedite compensation.
Q: Are there any international cooperation mechanisms for crypto fraud?
A: The EU’s Europol Cybercrime Centre and interpol’s Global Cybercrime Programme regularly share intelligence, enabling cross‑border asset freezes.
Q: What should I do if I notice suspicious activity on my crypto wallet?
A: Immediately freeze the wallet (if possible),record the transaction hash,and report to your local cyber‑crime unit.
Keywords integrated: crypto investment scam, massive crypto fraud, cryptocurrency fraud investigation, digital asset seizure, crypto scam victims, crypto Ponzi scheme, NCA crypto crackdown, money‑laundering, blockchain fraud, bitcoin seizure, FCA regulation, crypto fraud prevention, crypto scam arrest.
LSI terms: crypto trading bot,smart‑contract vaults,dark‑web database,mixing services,Proceeds of Crime Act,cyber‑crime hotline,DeFi risks,on‑chain analysis,independent security audits.
