Retired Aussie cop loses $1.2M in sophisticated Thai crypto scam

A retired Australian police officer, Michael Reinecke, has become the victim of a high-profile cryptocurrency scam in Thailand, reportedly losing 40 million Thai baht, or approximately $1.2 million [1]. The incident was reported to Thai authorities on July 18, 2025, and has since drawn attention for its sophisticated nature and the profile of the victim, a 30-year veteran of the Queensland Police Service.

Reinecke was targeted by an individual known as "Alex," allegedly a German national residing in Phuket. The scam began online, with Alex building a relationship with Reinecke over social media for more than a year before introducing him to the idea of crypto investments. The scammer allegedly enticed Reinecke with in-person meetings, where he showcased fabricated dashboards and charts, promising monthly returns of 5% to 10%. After transferring his life savings, Reinecke was told that the cryptocurrency platform had crashed, supposedly due to Alex’s lost phone. Soon after, Alex vanished, cutting off all communication [1].

The incident highlights a growing trend in crypto scams known as "pig butchering," where scammers cultivate trust through social engineering before exploiting it for financial gain. Reinecke, supported by his Thai wife and a local lawyer, has since filed a formal report with the Mueang Udon Thani Police Station. His case underscores how even experienced professionals can fall prey to manipulation when trust and emotional investment are involved [1].

Retirees and expatriates are increasingly targeted by crypto scammers, particularly due to their desire to grow or preserve savings in retirement. Reinecke’s case is not an isolated one—another recent incident involved a U.S. elderly individual who lost $330 million in a similar social engineering attack. These cases emphasize the need for greater education and awareness among investors, particularly regarding red flags such as unrealistic returns, unregistered platforms, and sudden disappearances after fund transfers [1].

According to the first half of 2025 data from Hacken’s Web3 security report, global losses from crypto scams and hacks have surged by 88.7% compared to the same period in 2024, reaching nearly $3.1 billion [1]. Though this represents a small fraction of the overall crypto market, the personal and emotional toll is significant. For Reinecke, the funds were intended for a home and a potential café, further amplifying the emotional impact of the scam.

To avoid such scams, investors are advised to verify the legitimacy of investment platforms through regulatory bodies such as the Thailand Securities and Exchange Commission or the Australian Securities and Investments Commission. They should also remain skeptical of promises of guaranteed high returns and employ secure practices such as using hardware wallets and enabling two-factor authentication. Prompt legal action and cooperation with authorities are also crucial in any suspected scam [1].

This case serves as a stark reminder of the evolving tactics used by fraudsters in the crypto space. It underscores the importance of a cautious and informed approach to digital asset investments, especially for vulnerable groups such as retirees and expatriates.

Source:

[1] How a retired Aussie cop lost $1.2M in a crypto scam in Thailand

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