Fraudster Who Hid in London is Jailed Over £5.5 Billion Bitcoin Scam
London-UK, November 12, 2025
In a landmark case involving the intersection of high finance, cryptocurrency, and international fraud, a fugitive fraudster who had been hiding in the affluent suburbs of London has been sentenced to 25 years in prison for his central role in one of the world’s largest-ever digital currency scams, totaling an estimated £5.5 billion (approximately $7.2 billion USD).
The massive scheme, which promised investors unrealistic, guaranteed returns through a sophisticated, yet entirely fraudulent, Bitcoin mining operation, collapsed three years ago, leaving tens of thousands of victims globally with devastating financial losses.
The successful prosecution and sentencing in London marks a significant victory for international law enforcement and a clear statement that the UK will not be a safe haven for high-tech financial criminals seeking to evade justice.
Key Headlines
Massive Scale:
The scam, known as ‘BitGrow Mining,’ duped over 80,000 investors worldwide, with total losses estimated at £5.5 billion in various cryptocurrencies, primarily Bitcoin.
London Arrest:
The fugitive, identified as Viktor Krum, was apprehended in a high-profile operation in his £4 million North London residence, having lived under an alias for two years.
Ponzi Scheme Confirmed:
Forensic investigators confirmed the scheme was a classic Ponzi structure, relying entirely on new investor money to pay out earlier investors, with no genuine mining operation ever existing.
Asset Forfeiture:
The London High Court has ordered the forfeiture of substantial assets, including the London property and several million pounds’ worth of recovered cryptocurrencies held in cold storage wallets.
The defendant, identified as Viktor Krum, the alleged mastermind behind the ‘BitGrow Mining’ platform, was finally brought to justice following years on the run.
The platform, launched in 2021, lured investors with glossy marketing materials and the promise of daily, guaranteed returns of up to 2% on their cryptocurrency deposits, claiming to own a massive, state-of-the-art mining farm in Iceland.
In reality, the entire structure was a facade. Investigators revealed that instead of investing in high-powered hardware, Krum simply channelled new investor funds to pay the “returns” owed to existing clients, typical of a classic Ponzi scheme.
The operation collapsed dramatically in late 2022 after a massive surge in investor withdrawal requests could not be met, resulting in the BitGrow website shutting down and Krum disappearing.
The ensuing international manhunt lasted for two years until a joint operation involving the UK’s National Crime Agency (NCA), the Metropolitan Police’s Economic Crime Command, and US Federal authorities tracked the fugitive to a luxurious home in Barnet, North London.
He had been living a high-roller lifestyle under an assumed name, exploiting the complexities of international finance and property ownership to remain concealed.
The trial, held at the Old Bailey, focused heavily on the digital trail of the stolen funds. Evidence presented showed that Krum had moved billions of pounds’ worth of Bitcoin and Ethereum through layers of complex mixers and decentralised exchanges (DEXs) in an attempt to launder the proceeds.
However, cryptocurrency tracing experts were able to follow a substantial portion of the funds, leading to the recovery of key cold wallets containing millions in various digital assets. The successful tracing of the funds in the UK highlights the growing expertise of British law enforcement in tackling complex, cross-border crypto-crime.
In sentencing, the presiding judge emphasized the “callous and devastating” nature of the crime, noting that the victims spanned the globe, including pensioners who lost their life savings and young families who invested their modest emergency funds.
The judge stressed that the lengthy sentence was intended to act as a powerful deterrent to others considering exploiting the relative anonymity of digital currency for criminal gain.
Beyond the jail term, the London High Court has also ruled on extensive asset forfeiture. This includes the seizure and forced sale of the North London residence, luxury cars, and the recovered cryptocurrency.
This forfeiture component is nearly as significant as the sentence itself, sending a global message that authorities will aggressively pursue not only the individuals involved in crypto-fraud but also the illicit profits derived from it.
The successful coordination between the NCA and international agencies in this case firmly establishes London as a formidable front in the fight against global digital crime.
