Graham Darby, 50, was jailed for lying about his Bitcoin wealth during a crypto dispute, serving 146 days.
Darby, age 50, hid around £8 million in Bitcoin and spent nearly five months in Parc Prison, which is located in Bridgend.
Zi Wang, a 22-year-old crypto trader from Australia, sued Darby, claiming Darby broke crypto swap promises. The judge ruled Darby lied about his Bitcoin and gave Darby an 18-month sentence, of which Darby served 146 days before apologizing to the court.
Darby said his experience was like the Post Office scandal, believing the system is flawed. The court heard details of their deal, in which Darby had many digital accounts and agreed to swap Bitcoin for Tezos, another type of crypto.
Wang claimed Darby failed to return the Tezos and owed money, between £900,000 and £1.3 million. He said their relationship soured, and Darby then blocked Wang on Telegram.
Darby claimed he met all obligations and suggested Wang simply lost money, not telling the court about his 100 Bitcoin. Cybercrime expert, Richard Sanders, found them, and Darby said he had a bad memory, claiming he forgot his hard drive password. Sanders confirmed the Bitcoin belonged to Darby.
Contempt of court proceedings started after this occured, and Darby was told about legal aid but didn’t attend a key hearing, leading the judge to rule against Darby. Darby later said he sought a lawyer.
The judge said Darby ignored the situation and gave him 18 months in jail, offering that he could shorten it by apologizing. Darby reportedly suffered a breakdown in prison, and his daughter hired Janes Solicitors with legal help, securing legal representation for him.
Darby finally admitted contempt, apologized, and settled with Wang, who agreed to reduce the sentence. Darby then appealed, claiming he could not get a lawyer.
The judge said Darby had memory problems likely linked to his mental state and potentially stemming from the stress of the court case, noting that Darby struggled during the proceedings.
The judge noted Darby followed court orders and did apologize, though it came late, leading him to reduce Darby’s sentence to only 146 days served.
Darby still said the system is broken, stating that mistakes had no consequences and that he still believed this was wrong.