Former Rugby Star Jarryd Hayne Reportedly Lost Nearly $800K in Bitcoin Scam

A former NRL sensation, Jarryd Hayne, is said to have lost approximately $780,000 in a Bitcoin-related fraud. The ex-athlete, who is currently serving time for sexual assault allegations, was reportedly deceived by a fellow prisoner.

The alleged fraudster is serving a sentence for orchestrating a Ponzi scheme that reportedly swindled $4.6 million from close associates and relatives.

Deception Behind Prison Walls

According to reports, the mastermind behind the Bitcoin scam was Ishan Seenar Sappideen, who encountered Hayne at the Cooma correctional facility in Australia. Sappideen allegedly promised Hayne and other inmates substantial returns on investments linked to the leading cryptocurrency. To establish credibility, he claimed to have previously generated nearly $300 million for his clients.

Six inmates, Hayne among them, took the bait and collectively transferred over $2 million between 2020 and 2022. Due to limited online access within the prison, the funds were reportedly channeled through external associates into accounts under Sappideen's control.

Despite having an agreement intended to safeguard his six-figure investment, the current location of Hayne's funds remains unclear.

Following the revelation of the alleged fraud, Australian authorities reportedly transferred Sappideen to another correctional institution.

A spokeswoman stated, "Intelligence officers at CSNSW became aware earlier this year of allegations that an inmate at Cooma Correctional Centre was attempting to influence and advise fellow inmates to engage in financial market transactions. The accused inmate has since undergone a security classification review, resulting in increased supervision and reduced privileges. CSNSW forwards suspected criminal activities to the Police Corrections Intelligence Unit, which shares intelligence with relevant state and federal law enforcement agencies."

Hayne, who clinched a world rugby championship with Australia in 2013, faced charges of aggravated sexual assault against a woman in Newcastle in 2019. He was recently convicted on two counts of non-consensual sexual intercourse and sentenced to a minimum of three years in prison.

Other Athletes Falling Prey to Crypto Scams

Brazilian soccer players Gustavo Scarpa, Mayke Rocha de Oliveira, and Willian Bigode have also found themselves victims of cryptocurrency fraud. They reportedly lost a combined sum exceeding $5 million after investing in an allegedly fraudulent enterprise named Xland.

Scarpa expressed his regret, stating, "I've always viewed people who fall for pyramid schemes and scams as foolish. Finding myself in such a situation is truly distressing."

Interestingly, rumors circulated suggesting Bigode's involvement in the scam. He vehemently denied these accusations, emphasizing that he too fell victim to the scheme, reportedly losing over $3.3 million.