Australian Feds Seize Mansion, Bitcoin Allegedly Linked to Crypto Exchange Hack
In a major operation, the Australian Federal Police (AFP) has seized nearly 25 Bitcoins, a waterfront mansion, and a Mercedes-Benz car, claiming they could be linked to a 2013 crypto exchange hack. The assets, valued at a total of $2.88 million AUD ($4.5 million), were forfeited by an Australian man from Queensland after the AFP claimed the assets could be tied to the proceeds of crime.
The AFP-led Criminal Assets Confiscation Taskforce (CACT) announced the seizure in a statement on May 18, highlighting its investigation into the suspected crypto exchange hack. The agency's probe began in September 2018, following information shared by law enforcement in Luxembourg about suspicious Bitcoin transactions that were allegedly connected to a Queensland man previously convicted of hacking a US gaming company.
The AFP claimed its investigation also linked the man to the theft of 950 Bitcoins stolen from a French crypto exchange in 2013. Although no criminal charges were laid over the Bitcoin theft, the agency obtained a court forfeiture order for the property, car, and Bitcoin in April under the claim that they could not be linked with "identifiable legitimate earnings."
The Owner of the Confiscated Assets
According to local media outlet 7News, 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. In 2011, a cyberattack on League of Legends developer Riot Games saw hackers obtain the details of more than 5 million users; Duffy was not accused of being involved in the hack, with prosecutors saying he got a copy of the data online and sold it for profit.
Duffy was also accused of hacking the X account of Riot Games president Marc Merrill to publicize his data-selling business, which offered to sell access to the accounts of other League of Legends players. The AFP Commander Jason Kennedy stated that the agency has "unique powers" under the Proceeds of Crime Act to "restrain and forfeit" assets it suspects to be proceeds of crime, including cybercrime.
The Impact of the Seizure
The proceeds from selling the assets will be sent to a special purpose fund that supports crime prevention and law enforcement-related measures, according to the AFP. 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.
As the use of cryptocurrency continues to grow, law enforcement agencies around the world are taking notice of the potential for cybercrime to be linked to financial transactions. The AFP's seizure of the mansion, Bitcoin, and Mercedes-Benz car serves as a reminder that authorities will continue to monitor and investigate suspected crypto-related crimes.
Australia's Crypto Landscape
In recent years, Australia has seen a significant rise in cryptocurrency scams, with Aussies losing $122 million in the last 12 months alone, according to the AFP. The agency's efforts to crack down on these scams are a reminder of the need for vigilance and cooperation between law enforcement agencies and the public.