Australia uncovers $123 million crypto laundering ring

Australian law enforcement has charged four individuals after an 18-month investigation into a $190 million AUD ($123 million USD) cryptocurrency laundering scheme allegedly run through a security company’s cash-in-transit unit.

The Australian Federal Police announced that approximately $13.6 million in suspected criminal assets were frozen in Queensland and New South Wales.

The Queensland Joint Organised Crime Taskforce (QJOCT), a coalition of 70 federal and state officers, launched the investigation in December 2023.

Authorities say the suspects used an armored vehicle division of a legitimate security firm to disguise the movement of illicit funds, which were then converted into cryptocurrency.

One individual reportedly laundered $9.5 million over 15 months, helping uncover a larger network that blended legitimate business revenue with proceeds from criminal activity.

The operation allegedly involved laundering money through a promotional marketing firm, a vintage car dealership, and various crypto exchanges.

Seizures in the case include 17 properties, vehicles, and multiple bank accounts.

Funds were reportedly distributed to beneficiaries via cryptocurrency or through shell companies acting as fronts.

Despite criminals’ increasing use of blockchain obfuscation tools such as mixers, DeFi platforms, and cross-chain bridges, law enforcement continues to use blockchain’s inherent transparency to trace illicit activity.

According to Chainalysis, over $100 billion in crypto has moved from wallets tied to criminal activity to conversion services between 2019 and mid-2024.

Authorities are also noting a rise in crypto-related violence.

In Morocco, police recently arrested Badiss Mohamed Amide Bajjou, who is suspected of coordinating crypto-related kidnappings across Europe.

In a separate case in France, Ledger co-founder David Balland was kidnapped and later rescued by police.

These incidents have prompted high-profile figures in the crypto industry to enhance their personal security.

The “Bitcoin Family,” for example, has split and encrypted their crypto seed phrase across multiple continents to guard against theft and physical coercion.