The police also recovered stolen vehicles, and rare trading cards. Authorities arrested four men, with one suspect facing 14 counts of burglary. In India, authorities seized almost $190 million in crypto linked to the infamous Bitconnect Ponzi scheme that defrauded investors of $2.4 billion. Meanwhile, a pseudonymous programmer known as “Hu Lezhi” made shocking claims about brain-computer chips controlling populations after sending $5.6 million in Ethereum to WikiLeaks, Ethereum’s burn address, and other wallets.
Crime Ring Steals Crypto ATMs and Rare Cards
Australian police uncovered a huge trove of stolen items after dismantling a local crime syndicate responsible for targeting crypto ATMs and collector card stores across Melbourne. Authorities described the discovery as an “Aladdin’s cave” of stolen goods after an investigation into a series of commercial burglaries involving a “significant network of offenders.” Since mid-January, the group allegedly stole six crypto ATMs and tens of thousands of dollars worth of collector cards, according to a statement from Victoria Police on Feb. 17.
The investigation led police to a stockpile of stolen items that included firearms, 100 car keys, a pill press machine, and an array of power tools. Among some of the recovered items were rare and valuable collector cards, including Pokémon, Yu-Gi-Oh, and Magic: The Gathering cards. Detectives believe the group used stolen vehicles to carry out their crimes.
Four men were arrested in connection with the spree. One of them faces 14 counts of burglary targeting commercial cryptocurrency ATMs and gaming stores, along with charges of handling stolen goods and illegally possessing firearms. He is scheduled to appear in court on May 2. Another suspect was charged with five commercial burglaries, three counts of vehicle theft, unlicensed driving, and possession of a prohibited weapon. His court date is set for Feb. 21. Two other men were released as the investigations are still under way.
Detective Inspector Patrick Watkinson of the North West Metro Regional Crime Squad stated that police arrested the main offenders but suspected ties to a much larger criminal syndicate. He added that authorities also identified lower-level offenders involved in the distribution of stolen goods, as well as connections to Middle Eastern Organized Crime Syndicates that were directing these criminal activities.
Over the past few years, Australia emerged as a growing hub for crypto ATMs. In fact, the state where the thefts took place hosted 313 Bitcoin ATMs and tellers. The country saw a surge in crypto ATM adoption after private firms entered the market in late 2022. Today, Australia ranks as the third-largest market for Bitcoin and cryptocurrency ATMs, with 1,462 machines in operation. This is up from just 67 in August of 2022. Leading providers in the country include Coinflip, which operates 679 ATMs, Localcoin with 543, and Cryptolink with 98.
(Source: Coin ATM Radar)
Despite Australia’s expansion in the crypto ATM sector, the United States is still the dominant player as it hosts 29,740 machines and accounts for 80% of the global market. Canada follows as the second-largest market, with 3,074 crypto ATMs making up 8.3% of the global share.
Bitconnect Ponzi Scheme Assets Seized in India
Indian authorities also recently seized close to $190 million in cryptocurrency linked to Bitconnect as part of an ongoing investigation into the global Ponzi scheme that collapsed in 2018. The Enforcement Directorate (ED) in Ahmedabad conducted raids in Gujarat on Feb. 11 and 15, and confiscated additional assets, including ₹13,50,500 (approximately $15,582), a sport utility vehicle, and electronic devices. The seized assets were reportedly tied to associates of Bitconnect, which is a scheme that defrauded 4,000 investors across 95 countries. The scheme led to an estimated $2.4 billion in losses.
Bitconnect was launched in 2016, and operated by recruiting global promoters who were paid commissions to bring in new investors. The scheme unraveled in 2018, and its founder, Satish Kumbhani, was later charged by the US Department of Justice in February of 2022. Authorities allege that between November 2016 and January 2018, the accused collected huge amounts of funds from investors worldwide, including in India.
Some victims even resorted to extreme measures to recover some of their losses. In August of 2024, the ED revealed that investor Shailesh Babulal Bhatt, who had lost money in Bitconnect Coin (BCC), allegedly kidnapped two of Kumbhani’s employees. He then extorted 2,091 Bitcoin, 11,000 Litecoin, and approximately $1.7 million in exchange for their release.
(Source: FBI)
Luckily, law enforcement is hard at work to prevent similar losses from happening to other investors. The FBI’s “Operation Level Up” reportedly prevented roughly $285 million in potential crypto fraud losses between January 2024 and January 2025.
Coder Sends Millions with Crypto Conspiracy
Meanwhile, a pseudonymous programmer known as “Hu Lezhi” recently almost donated $2 million worth of Ethereum (ETH) to WikiLeaks, along with an on-chain message making shocking allegations about the Chinese military’s use of nano computer chips to control citizens. In a translated message that was sent on Fed. 17, Lezhi claimed that brain-computer chips have been deployed on a large scale for military purposes, and that major global powers are using base stations, radios, and nano-brain-computer chips to exert control over populations. The programmer also stated that they have been a victim of this technology since birth.
Lezhi’s message also accused two hedge fund executives from Kuande Investment, which is more commonly known as WizardQuant, of using similar brain-computer weapons to manipulate their employees. The people named in the allegations are Feng Xin, a co-founder and chief risk officer at WizardQuant, and Xu Yuzhi, the company’s chief investment officer. Despite the severity of these claims, WizardQuant has not commented on the allegations.
Some of Lezhi’s warnings (Source: Etherscan)
The on-chain activity tied to Lezhi reveals that they first reached out to WikiLeaks on Feb. 10, warning of a new type of crime in which victims are gradually deprived of their senses until they become “complete slaves to the digital machine.” Between Feb. 10 and 17, they transferred 711.5 ETH to WikiLeaks, with the largest single transaction amounting to about 591.6 ETH, which is valued at approximately $1.6 million, taking place on Feb. 17.
Beyond the donation to WikiLeaks, Lezhi also sent 603 ETH, worth around $1.65 million, to Ethereum’s burn address, effectively destroying the funds while embedding similar on-chain messages. Additionally, they further transferred 700 ETH to the “ndao.eth” wallet and 33 ETH to an unidentified “Grant Provider” address. In total, 2,047 ETH equivalent to $5.6 million were moved from their Ethereum address “0x1a19.” No additional transactions have been recorded from this wallet since these transfers.
WizardQuant was founded in 2014 and operates out of Shanghai and Beijing. The company employs between 51 and 200 people according to LinkedIn data. The firm specializes in quantitative investment strategies to support its research and trading in the stock, futures, and options markets.
This article was originally Posted on Coinpaper.com
