A computer game developer has been convicted of theft for stealing virtual currency from players' online accounts and selling it on the black market. Andrew Lakeman, 32, was employed by British gaming company Jagex when he accessed 68 player accounts in the popular role-playing game Old School RuneScape.
Lakeman exploited his internal access to steal billions of gold pieces, which he then sold for cryptocurrency. Jagex first detected suspicious activity in 2018, and the case was transferred to Cambridgeshire Police in 2019. However, the prosecution was significantly delayed by a legal dispute over whether the virtual gold could be classified as 'property' under the Theft Act 1968.
In January, the Court of Appeal ruled that the in-game wealth held real-world value, a decision that could impact the gaming industry and future prosecutions involving digital assets. The court determined that physical existence is not a prerequisite for property, noting that the virtual items were used in real-world trading, similar to cryptocurrencies.
Following this ruling, Lakeman, who was known in the game as 'Mod Jed,' pleaded guilty to charges including unauthorized computer access with intent to commit other offenses, theft by an employee, and acquiring criminal property. He was sentenced to a three-year jail term, suspended for two years, and ordered to complete 150 hours of unpaid work and a 25-day rehabilitation activity.
Searches of Lakeman's devices and bank accounts revealed he had received £364,829 from cryptocurrency dealers. Evidence also showed communications with his wife detailing illicit money-making schemes and discussions about high-value RuneScape accounts.
Detective Constable Andrew McKeane, who led the investigation, described the case as complex and emphasized that the monetary gain from selling virtual items is equivalent to any other form of theft. He added that the justice system must adapt to new crimes emerging from the growth of online and virtual worlds.
Lakeman began his employment at Jagex in 2015. The company, best known for its RuneScape series, identified the fraudulent activity in May 2018. Initially suspected to be a system glitch, the issue recurred later that year. Jagex then implemented a trap, including an 'account recovery curfew' without staff notification, which allowed their IT department to pinpoint Lakeman's devices and home address as the source. Lakeman was arrested in July 2019.
A Jagex spokesperson stated that Lakeman abused the trust placed in him by the company and its players. The company reported that its teams spent hundreds of hours investigating the actions, restoring affected accounts, and supporting the community. Jagex has since enhanced its security and internal processes to prevent similar incidents.