FCA Recovers £850k for Victims of £1.5m Crypto Investment Fraud

The Financial Conduct Authority has secured confiscation orders totaling over £850,000 against two individuals behind a £1.5 million cryptoasset fraud. For fintech professionals, this enforcement action underscores the regulator's increasing success in clawing back illicit gains from the digital asset space, signaling a more aggressive stance on asset recovery following criminal convictions.

What was announced

At a hearing at Southwark Crown Court on 28 September 2026, Raymondip Bedi and Patrick Mavanga were ordered to pay £603,404.28 and £247,997.99, respectively. These orders, made under the Proceeds of Crime Act 2002, follow a fraudulent investment scheme operated by the pair between February 2017 and June 2019. During this period, Bedi and Mavanga targeted at least 65 investors through cold-calling, persuading them to put money into fictitious cryptoasset opportunities.

The fraud was conducted through entities including CCX Capital and Astaria Group LLP, resulting in total losses of £1,541,799. The FCA has already identified and contacted the victims and intends to return the recovered funds to those defrauded. This financial penalty follows the criminal sentencing in July 2025, where Bedi received five years and four months’ imprisonment, while Mavanga was sentenced to six years and six months for their roles in the scheme.

Under the terms of the confiscation orders, the defendants must repay either the benefit gained from their criminal conduct or the value of their available assets, whichever is lower. If the defendants fail to pay the confiscation orders within three months, Bedi will face up to an additional five years in prison and Mavanga could face up to three years.

"Bedi and Mavanga defrauded investors and left them out of pocket. These orders bring victims a step closer to getting money back. We’ll keep coming after fraudsters and holding them to account"

Steve Smart, executive director of enforcement and market oversight at the FCA.

The companies involved

The Financial Conduct Authority (FCA) is the primary conduct regulator for financial services firms and financial markets in the United Kingdom. Operating as an independent public body, the FCA is funded by the firms it regulates and is responsible for ensuring that markets function well, protecting consumers, and enhancing market integrity. In recent years, the regulator has significantly expanded its oversight of the cryptoasset sector, requiring firms to register and adhere to strict anti-money laundering and marketing standards.

The fraudulent activities in this case were facilitated through CCX Capital and Astaria Group LLP. These entities were not legitimate financial services providers but were used as fronts for the "boiler room" style operation led by Bedi and Mavanga. Such schemes typically involve high-pressure sales tactics and the promise of high returns on non-existent assets. The use of crypto branding allowed the operators to exploit the lack of consumer understanding and the hype surrounding digital currencies during the late 2010s to mask the fraudulent nature of the investment.

What FF News has reported before

The FCA has been notably active in the crypto and retail investment space throughout late 2026. FF News recently covered how the FCA Targets Illegal London Crypto Traders in Major Multi-Agency Crackdown, highlighting a broader effort to purge the capital of unregistered digital asset operators. This follows a significant move where the FCA Shuts Down 24 CFD Firms in Major Crackdown on Misleading UK Authorisation, demonstrating the regulator's focus on firms that misrepresent their regulatory status. Additionally, the regulator has balanced enforcement with growth initiatives, as seen when the FCA Unveils Strategic Roadmap to Boost SME Access to Finance via Open Finance and Regulatory Reform.

What this means

This case highlights a shift in the regulatory landscape from mere prosecution to active asset recovery. While securing prison sentences for crypto fraudsters is a deterrent, the ability to return funds to victims is the true metric of success for a conduct regulator. The industry is currently under immense pressure to bridge the "trust gap" created by such high-profile scams. For legitimate fintech firms, these enforcement actions are a double-edged sword: they clean up the market but also keep the risks of the sector in the public eye. The question remains whether the FCA can maintain this pace of recovery as fraudulent schemes become more technologically sophisticated and cross-border in nature.