Australian federal police seizes $4.5M in assets tied to 2013 crypto theft

Australian authorities have seized more than $4.5 million in assets from a Queensland man, who was linked to the 2013 theft of 950 BTC from a French crypto exchange.

In a May 18 statement, AFP-led Criminal Assets Confiscation Taskforce said that more than $4.5 million worth of assets—including a waterfront mansion in Queensland, a luxury vehicle, and nearly 25 Bitcoin (BTC)—have been forfeited to the Commonwealth, following an investigation into the suspected proceeds of a major international crypto theft dating back to 2013.

The forfeiture was ordered by the District Court of Queensland back in April this year, culminating a years-long probe into stolen digital assets and cybercrime involving a Queensland man previously convicted of hacking a U.S.-based gaming company. The man, whose identity has not been publicly disclosed in this announcement, was also linked to the theft of 950 BTC from a French crypto exchange in 2013. While no criminal charges were filed in this specific case, Australian authorities used the Proceeds of Crime Act to pursue the assets under civil forfeiture laws, which do not require a criminal conviction.

The investigation, known as Operation Gouldian, began in September 2018 after AUSTRAC—the Australian financial intelligence agency—received information from law enforcement in Luxembourg about suspicious BTC transactions. This triggered a deeper probe into the individual’s financial activity, which ultimately revealed a massive gap between the man’s apparent wealth and any identifiable legitimate income.

By July 2023, the CACT had secured restraining orders over several assets believed to be funded through criminal means, including a 2019 black Mercedes Benz sedan, a waterfront property in Beachmere, and 24.99454224 BTC. Federal agents later executed search warrants at the Beachmere property, strengthening the case for forfeiture.

“Criminals are driven by greed at the expense of honest Australians and businesses who are losing their hard-earned money to cyber criminals,” AFP Commander Jason Kennedy said in a statement. “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.”

The seized assets will be liquidated by the Australian Financial Security Authority, and the funds will be transferred to the Commonwealth Confiscated Assets Account. From there, they may be allocated by the Attorney-General to support crime prevention initiatives, law enforcement programs, and efforts targeting the illicit drug trade and related social harms.

The Queensland forfeiture adds to a growing list of recent cases where proceeds from crypto thefts were used to fund lavish lifestyles. For example, last week, the U.S. Department of Justice indicted 12 more individuals in a $263 million crypto fraud case, revealing that the illicit gains were spent on luxury vehicles, jewelry, and designer goods.