Criminals' Secret Weapon Unmasked: 55 Arrested in $37.9M Australia Crypto Crackdown

Australian police have arrested 55 individuals and seized $37.9 million in cryptocurrency as part of the third phase of Operation Ironside, a joint investigation with the FBI targeting organized crime networks. The operation, which leverages intelligence from an encrypted messaging app called AN0M, has led to over 800 charges related to drug trafficking, firearms, and conspiracy offenses, according to South Australia Police. The High Court's recent ruling validated the use of intercepted AN0M messages as evidence, paving the way for this latest round of arrests, according to a CryptoNews report.

Operation Ironside began in 2018 when the FBI developed AN0M, an encrypted app disguised as a secure communication tool for criminals. Modified phones preloaded with the app—lacking cameras, GPS, and browsers—were distributed through criminal networks. The FBI retained master encryption keys, enabling authorities to secretly capture all messages without breaking the app's encryption, an ABC News analysis explained. By 2021, the app had been used to generate 19.3 million messages in Australia alone, leading to global arrests and the seizure of $58 million in crypto and cash, a Yahoo report noted. The latest phase, involving 300 officers, marks a "significant blow to organized crime" in South Australia, Deputy Commissioner Linda Williams stated.

The probe highlights the growing complexity of crypto-related crime. Europol recently warned that blockchain misuse is becoming increasingly sophisticated, straining law enforcement resources globally. Burkhard Mühl, head of Europol's European Financial and Economic Crime Centre, noted that investigating these crimes "places a significant burden" on agencies, emphasizing the need for standardized tools and cross-border cooperation. Meanwhile, the T3 Financial Crime Unit—a partnership between Tether, TRON, and TRM Labs—has frozen $300 million in illicit assets since its launch, underscoring the role of public-private collaboration in combating crypto crime.

Australia's crackdown comes as public trust in cryptocurrency remains low. A 2024 survey by Swyftx found 60% of Australians distrust crypto, with 31% citing concerns about fraud, Decrypt reported. Yet, the Albanese government has pushed for regulatory progress, balancing enforcement with efforts to integrate digital assets into the mainstream financial system.

The success of Operation Ironside also reflects the evolving tactics of law enforcement. By leveraging encrypted communication intelligence, authorities have disrupted networks involved in drug smuggling, money laundering, and firearms distribution. With further arrests anticipated, Williams emphasized the operation's role as a "deterrent message to organized criminals." As crypto crime adapts, so too must the strategies to combat it—highlighting a global race to stay ahead of increasingly sophisticated threats.