Beach Mansion, Benz and Bitcoin Worth $4.5m Seized from League of Legends Hacker Shane Stephen Duffy

Luxury assets worth over $4.5 million have been seized by Australian authorities following a years-long investigation into stolen cryptocurrency and cyber hacking. The haul, which includes a beachfront mansion, a 2019 black Mercedes-Benz sedan, and nearly 25 Bitcoin, was secured under proceeds of crime laws after being linked to a previously convicted Queensland hacker.

The assets were confiscated in April by the AFP-led Criminal Assets Confiscation Taskforce (CACT), which began its investigation in 2018 following a tip from Luxembourg authorities about suspicious Bitcoin transactions. Investigators suspect that Shane Stephen Duffy, a 32-year-old man from Queensland, stole 950 Bitcoin from a French cryptocurrency exchange in 2013, now worth approximately $150 million.

Duffy had previously been convicted of hacking Riot Games, the US-based gaming company behind the hit video game League of Legends. The CACT investigation began after authorities were tipped off about suspicious activity related to Bitcoin transactions. While no criminal charges were laid in relation to the alleged theft, the CACT was able to restrain the suspected proceeds of crime under federal laws, even without a related prosecution.

The seized waterfront home, purchased in 2018 for $1.1 million and held in Duffy's mother's name, is now estimated to be worth around $2 million. The money from the eventual sale will go into a special fund that supports crime prevention and law enforcement initiatives. According to AFP Commander Jason Kennedy, stripping criminals of their profits is a key strategy in disrupting cybercrime networks.

"The Proceeds of Crime Act provides law enforcement agencies with unique powers to restrain and forfeit instruments and proceeds of crime," Kennedy said. "Criminals are driven by greed at the expense of honest Australians and businesses who are losing their hard-earned money to cyber criminals. The profits derived from criminal activities are also often used to fund further criminal acts, which is why the AFP works closely with our partners in the CACT to target the proceeds of crime and ensure they are re-invested in the community."

According to court documents, Duffy made over $32,000 in 2013 by selling access to inactive League of Legends accounts. He also hacked the Twitter account of Riot Games president Marc Merrill to promote his operation and allegedly teamed up with another hacker to disconnect players during matches.

Duffy sent threatening emails to the company, which reported financial losses in the hundreds of thousands of dollars. He pleaded guilty in Brisbane District Court in 2016 and was sentenced to two-and-a-half years in jail, to be served on immediate parole. His lawyer told the court that the self-taught hacker had autism and had a difficult childhood.

Authorities have hailed the seizure as a significant victory in disrupting cybercrime networks and depriving criminals of their ill-gotten gains. The AFP-led CACT continues to work tirelessly to target proceeds of crime and ensure they are re-invested in the community, supporting initiatives that prevent crime and protect vulnerable Australians.

The Story Behind the Seizure

The seizure of Duffy's assets is a culmination of years of investigative work by the AFP-led CACT. The investigation began in 2018 after AUSTRAC was tipped off about suspicious Bitcoin transactions related to Duffy's activities.

Investigators suspect that Duffy stole 950 Bitcoin from a French cryptocurrency exchange in 2013, now worth approximately $150 million. While no criminal charges were laid in relation to the alleged theft, the CACT was able to restrain the suspected proceeds of crime under federal laws, even without a related prosecution.

The CACT has secured restraining orders over Duffy's assets, including the beachfront mansion and the 2019 black Mercedes-Benz sedan. Nearly 25 Bitcoin were also seized as part of the investigation.

Reinvestment of Proceeds

According to AFP Commander Jason Kennedy, the profits derived from criminal activities are often used to fund further criminal acts. By seizing Duffy's assets and re-investing them in crime prevention initiatives, authorities aim to disrupt cybercrime networks and protect vulnerable Australians.

"The proceeds of crime are a significant source of funding for many cybercrime operations," Kennedy said. "By targeting these funds and re-investing them in community programs and initiatives, we can help to prevent further criminal activity and ensure that the profits from crime are not lining the pockets of criminals."