Australian Authorities Seize $123 Million in Cryptocurrency Money Laundering Scheme

Australian authorities have dismantled a significant money laundering operation in Queensland, with four individuals facing charges for their alleged involvement in a scheme that moved $123 million in illicit funds into cryptocurrency. The operation, which spanned 18 months, culminated in a series of raids across Brisbane and the Gold Coast on June 5 and 6. These raids were conducted by the Australian Federal Police (AFP)-led Criminal Assets Confiscation Taskforce (CACT), in collaboration with the Queensland Joint Organised Crime Taskforce (QJOCTF) and other agencies.

The raids uncovered a substantial amount of assets, including approximately $110,370 in cryptocurrency, $30,000 in physical cash, encrypted devices, business documents, vehicles, properties, and bank accounts. The investigation revealed that the scheme involved funneling drug money and other criminal proceeds through a Gold Coast security company that offered armored transport services. The funds were then laundered using shell businesses, classic car sales, and cryptocurrency exchanges, with the company allegedly converting large volumes of physical cash into cryptocurrency to obscure its origins.

AFP Detective Superintendent Adrian Telfer highlighted the sophistication of the operation, stating, "We allege this organization intentionally concealed and disguised the source, value, and nature of their illicit money, and distanced themselves from the funds to try to avoid getting caught by authorities." A 32-year-old man from Heathwood in Brisbane, accused of laundering $6.16 million over 15 months, has been remanded in custody and is appearing in court. Authorities claim he used a sales promotion company, registered in his wife’s name as a “straw director,” to receive funds from the security company. The company’s director and general manager, both from Maudsland, were granted bail after being charged with dealing in proceeds of general crime worth over $6.4 million. Additionally, a 58-year-old West End man, linked to a classic car dealership accused of washing $4.1 million, also faces multiple money laundering charges.

The case underscores the growing use of cryptocurrency to hide illicit funds, with Australian authorities warning that it has become a favored tool for organized crime. The CACT has restrained over $110 million in assets in the past year, much of it crypto-related, bringing total seizures since 2019 to $1.2 billion. In July 2024, the AFP-led CACT restrained $333,779 in crypto as part of a $10.1 million asset seizure in the Gold Coast money laundering case. The restrained assets also included seven properties worth $8.4 million, $1.12 million in cash, and over $76,000 held across multiple bank accounts. Last month, a Queensland man forfeited a $2.9 million portfolio, including a waterfront mansion and nearly 25 BTC, after AUSTRAC, Australia’s financial intelligence agency, flagged suspicious activity linked to a 2013 crypto theft.