Retired Cop Loses $1.2M to Crypto Scam in Thailand After Year-Long Deception

Michael Reinecke, a retired Australian police officer with three decades of service, lost approximately $1.2 million in a cryptocurrency scam while living in Thailand. The incident was reported to the Mueang Udon Thani Police Station on July 18, 2025. Reinecke, who had developed a strong reputation for detecting deception during his career, was deceived by an individual known as “Alex,” a German national allegedly based in Phuket [1].

The scam began when Alex initiated contact with Reinecke through social media. Over the course of more than a year, he cultivated a relationship with Reinecke, eventually introducing him to so-called crypto investment opportunities. Alex claimed to offer monthly returns of 5%-10% and backed these claims with dashboards and charts during in-person meetings. These interactions lulled Reinecke into a false sense of trust, prompting him to transfer his life savings into what he believed was a secure and lucrative investment [1].

Soon after the transfers, the scam unraveled. Alex claimed that the cryptocurrency platform had crashed due to his lost phone, which he said led to the theft of the funds. When Reinecke pressed for further explanation or access to his assets, Alex abruptly cut off communication and disappeared [1].

Reinecke, supported by his Thai wife, Areerat Noonyat, and his lawyer, Kritsada Lohitdee (better known as Lawyer Nobi), filed a formal report with local authorities. The case highlights a growing trend of so-called “pig butchering” scams, where scammers build deep personal relationships with victims over time, often through social media or dating platforms, before defrauding them of large sums of money [1].

Retirees and expatriates are particularly vulnerable to such schemes, as they often seek ways to grow or preserve their savings but may lack the technical or financial expertise to identify fraudulent platforms. Scammers frequently exploit emotional trust, fake legitimacy through professional-looking dashboards, and high-yield illusions to lure victims into large-scale investments. Once the money is transferred, scammers typically disappear, citing unrelated incidents like theft or hacking to justify the loss and avoid accountability [1].

The case underscores the broader rise in crypto-related frauds globally. According to the H1 2025 Web3 security report from Hacken, approximately $3.1 billion has been lost to scams and hacks in the first half of the year, an 88.7% increase compared to H1 2024 [1]. While this amount accounts for only 0.08% of the total crypto market capitalization, the personal and emotional toll on victims is often significant. Reinecke and his wife had planned to use the funds to build a home and possibly open a café, making the loss especially devastating [1].

To avoid such scams, investors are advised to independently verify the legitimacy of investment platforms by checking registration with relevant authorities such as the Securities and Exchange Commission in Thailand or the Australian Securities and Investments Commission. High-yield promises, especially consistent double-digit monthly returns, are strong red flags and should be treated with caution. Investors should also use hardware wallets for self-custody and enable two-factor authentication for all accounts. In the event of a suspected scam, prompt legal action, including filing a report and gathering documentation, is essential [1].

Reinecke’s case serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of due diligence. It illustrates how even seasoned professionals can fall victim to well-crafted social engineering tactics, emphasizing the need for continued education and awareness in the rapidly evolving digital finance landscape [1].

Source: [1] How a retired Aussie cop lost $1.2M in a crypto scam in Thailand (https://coinmarketcap.com/community/articles/689602cb1214ff464aa18fb6/)