Australian Federal Police Seize $1.5 Million in Bitcoin, Mansion, and Mercedes-Benz Linked to 2013 Crypto Hack

The Australian Federal Police (AFP) has seized a waterfront mansion, a Mercedes-Benz, and nearly 25 Bitcoin, alleging that these assets are proceeds from a crime. The seizure is linked to a 2013 hack of a cryptocurrency exchange. The authorities claim that the Bitcoin, worth approximately $1.5 million at the time of seizure, is connected to the hack, which involved the theft of 950 Bitcoin from a French crypto exchange. The mansion, located in a prestigious waterfront area, and the luxury car are believed to have been purchased with the stolen funds. This seizure is part of an ongoing investigation into the hack, which has been a significant case in the history of cryptocurrency theft. The authorities are continuing to investigate the case and have not yet made any arrests. The seizure of the mansion and the Bitcoin is a significant development in the case, as it is the first time that authorities have been able to seize assets linked to the hack. The authorities are hoping that the seizure will help them to identify the individuals responsible for the hack and to recover more of the stolen funds. The seizure of the mansion and the Bitcoin is a reminder of the risks associated with cryptocurrency and the importance of taking steps to protect against theft. The authorities are urging individuals and businesses to take steps to protect their cryptocurrency holdings and to report any suspicious activity to the authorities.

The AFP-led Criminal Assets Confiscation Taskforce (CACT) initiated the investigation in September 2018 after receiving information from Luxembourg law enforcement about suspicious Bitcoin transactions. The investigation linked the transactions to a Queensland man who had previously been convicted of hacking a US gaming company. The man, identified as Shane Stephen Duffy, 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 prosecutors stated that he obtained a copy of the data online and sold it for profit. Additionally, Duffy was accused of hacking the X account of Riot Games president Marc Merrill to promote his data-selling business. The AFP obtained a court forfeiture order of the property, car, and Bitcoin in April, claiming that they could not be linked with “identifiable legitimate earnings.”

AFP Commander Jason Kennedy highlighted the agency's “unique powers” under the Proceeds of Crime Act to “restrain and forfeit” assets suspected to be proceeds of crime, including cybercrime. 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. This seizure underscores the AFP's commitment to targeting the proceeds of crime and ensuring they are reinvested in the community. The case serves as a stark reminder of the potential risks associated with cryptocurrency and the importance of robust security measures to protect against theft and fraud. The AFP's actions demonstrate their proactive approach in combating cybercrime and their dedication to recovering stolen assets and bringing perpetrators to justice.