Australian Authorities Seize $2.88M in Assets Linked to Crypto Hacking

Australian federal authorities have seized a waterfront mansion in Queensland, along with nearly 25 Bitcoin and a Mercedes-Benz car, valued at a total of 4.5 million Australian dollars ($2.88 million). The seizure is part of an investigation into a man from Queensland who was previously convicted of hacking a US gaming company. The investigation began in September 2018 after law enforcement in Luxembourg shared information about suspicious Bitcoin transactions linked to the man. The Australian Federal Police (AFP) claimed that the man was also involved in the theft of 950 Bitcoin from a French crypto exchange in 2013.

The AFP obtained a court forfeiture order of the property, car, and Bitcoin in April, stating that they could not be linked to any identifiable legitimate earnings. The owner of the confiscated assets is Shane Stephen Duffy, who pleaded guilty to fraud and computer hacking in 2016 for selling the personal data of League of Legends players. Duffy was not accused of being involved in the 2011 hack of Riot Games but was found to have obtained and sold the data for profit. He was also accused of hacking the X account of Riot Games president Marc Merrill to promote his data-selling business.

AFP Commander Jason Kennedy stated that the agency has unique powers under the Proceeds of Crime Act to restrain and forfeit assets suspected to be proceeds of crime, including cybercrime. The profits from criminal activities are often used to fund further criminal acts, which is why the AFP works closely with partners in the Criminal Assets Confiscation Taskforce (CACT) to target the proceeds of crime and ensure they are reinvested in the community. The proceeds from selling the assets will be sent to a special purpose fund that supports crime prevention and law enforcement-related measures.

Since July 2019, the CACT has used its power to restrain over $1.2 billion in assets, including houses, cars, yachts, crypto, and fine art. The seizure of the mansion and the ongoing investigation into the crypto exchange hack highlight the growing threat posed by cybercrime. As the use of cryptocurrency continues to rise, so too does the risk of hacking and theft. Authorities are increasingly focused on combating this threat, using a combination of traditional law enforcement techniques and cutting-edge technology to track down and prosecute those responsible.

The investigation into the crypto exchange hack is ongoing, and authorities are continuing to work to recover the stolen funds and bring those responsible to justice. The seizure of the mansion is a significant step forward in this effort, and it serves as a reminder of the importance of vigilance in the face of cybercrime. As the use of cryptocurrency continues to grow, it is essential that authorities remain vigilant and proactive in their efforts to combat this growing threat.