Cryptonews Blockchain News

Australian Authorities Charge Four in $123M Crypto Money Laundering Scheme

AML Australia

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Last updated:

June 9, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Key Takeaways:

Four people have been charged following an 18-month investigation into a suspected US$123 million money laundering scheme.
The operation allegedly used a Gold Coast-based security company to move cash and convert it to cryptocurrency.
Authorities seized US$13 million in assets, including properties and vehicles, across two states.

Australian law enforcement agencies have charged four people over an alleged money laundering scheme that moved illicit funds through a network of businesses and converted large volumes of cash into cryptocurrency.

According to a June 9 statement, the charges follow an 18-month investigation coordinated by the Queensland Joint Organised Crime Taskforce (QJOCTF).

Money Laundering Network Used Security Firm to Move Illicit Gains

The operation allegedly used a Gold Coast-based security company to transfer A$190 million (~ US$123 million) in cash, some of which was mixed with legitimate business income and converted into crypto.

The Australian Federal Police-led taskforce restrained assets worth approximately A$21 million (~ US$13 million) across Queensland and New South Wales, including 17 properties and multiple vehicles.

Authorities executed 14 search warrants in Brisbane and the Gold Coast on June 5 and 6. The QJOCTF alleges the security company used courier services and complex banking arrangements to conceal the origin of the funds.

Dead drops were used to collect cash in multiple Australian cities; the cash, which was then transported to Queensland by air and funneled into the laundering network.

A 32-year-old Brisbane man linked to a sales promotion company allegedly received A$9.5 million (~ US$6.2 million) in cash and cryptocurrency and attempted to obscure his involvement by using his wife as a nominal company director. He has been charged and remanded in custody.

Two other people, a 48-year-old man and a 35-year-old woman who directed and managed the security company, have been charged and granted bail. A fourth man, aged 58, allegedly operated a classic car business used to launder an additional A$6.4 million (~ US$4.2 million) and is facing multiple offenses.

Keep your crypto records in check! 🧐
— ato.gov.au (@ato_gov_au) March 13, 2025

Crypto Use in Cash Crimes Spurs Regulatory and Enforcement Collaboration

The Australian Border Force, AUSTRAC, the Australian Criminal Intelligence Commission, and the Australian Taxation Office also contributed to the investigation. Authorities said inquiries into the origins of the full AUD $190 million remain ongoing.

Criminal groups are increasingly using cryptocurrency to disguise large cash movements, prompting regulators to enhance blockchain tracing capabilities. Authorities worldwide are targeting how cash-based schemes exploit crypto platforms to avoid detection.

In the meantime, cross-agency cooperation is becoming increasingly important when it comes to combating sophisticated criminal activities. Australian taskforces combining financial, customs, and crypto oversight may become a model for future investigations, especially as laundering networks operate across both physical and digital channels.

Frequently Asked Questions (FAQs)

How do criminals typically integrate cryptocurrency into laundering operations?

Criminals may convert cash into crypto via over-the-counter brokers, exchanges, or complicit businesses. Funds are then moved across wallets or platforms to reduce traceability before converting back to fiat or using them directly for purchases.

What is the role of a “straw director” in financial crimes?

A straw director is a person listed as a company director in name only, while control rests with another person. This tactic is often used to obscure real ownership and avoid legal accountability.

How do “dead drops” function in laundering networks?

Dead drops involve leaving cash at prearranged locations for pickup by couriers. This method avoids direct handovers and reduces exposure but requires tight coordination and is often used by large-scale operations.