Authorities seized $4.5 million in assets from a man linked to suspected crypto-related criminal activity.
The AFP traced the Bitcoin transactions to a convicted cybercriminal from Queensland involved in past data breaches.
AUSTRAC is tightening control on crypto exchanges to prevent misuse by inactive or unregulated operators.
Australian authorities have seized $4.5 million worth of assets from a Queensland man suspected of cybercrime involvement. The assets include a luxury waterfront mansion, a Mercedes-Benz vehicle, and nearly 25 Bitcoin.
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The seizure followed a court forfeiture order secured by the Australian Federal Police. Authorities acted under the Proceeds of Crime Act after an investigation revealed no lawful income source behind the property.
Bitcoin Trail Leads to Convicted Cybercriminal
Officials from the Criminal Assets Confiscation Taskforce conducted the operation. The Bitcoin-related investigation began in 2018 after Luxembourg police flagged suspicious activity. These flagged transactions reportedly led back to the Queensland resident.
The man was later identified as Shane Stephen Duffy. He was previously convicted in the United States for cybercrime offenses. He had pleaded guilty in 2016 for selling stolen data of online game users.
Authorities linked Duffy to data from the game League of Legends. Although not responsible for the 2011 Riot Games hack, he reportedly profited from reselling stolen data.
Investigators also connected Duffy to a 2013 cyber theft of 950 Bitcoin from a French cryptocurrency exchange. No formal charges followed that case, but the AFP believes some seized assets may stem from that theft.
Authorities Target Criminal Proceeds
The AFP stressed that stripping criminals of assets is a key part of its crime prevention strategy. Officials say criminal profits often fuel more illegal activity. The funds gained from seized assets will support law enforcement and community protection programs.
The confiscated assets will be sold, and proceeds directed into a national crime-fighting fund. This action highlights Australia’s increasing focus on digital financial crimes and cybercrime-linked proceeds.
Since mid-2019, CACT has frozen over $1.2 billion in assets linked to suspected criminal conduct. Seized items range from real estate and vehicles to artwork and cryptocurrency holdings.
Crypto Exchange Oversight Tightens
Australia’s financial crime watchdog, AUSTRAC, is also stepping up oversight of digital currency exchanges. It recently warned that inactive platforms risk deregistration if they do not formally withdraw.
According to AUSTRAC, hundreds of registered exchanges may have stopped operating but remain listed. This creates risks of potential misuse by criminal networks.
AUSTRAC is now contacting inactive operators to update records and enforce compliance. It reminds businesses that they must report any changes in services or operations. The coordinated moves reflect a broader crackdown by Australian authorities on crypto-linked crimes and asset concealment.
