Australia Shuts Down $123M Crypto Laundering Operation—Turns Out Even Criminals Prefer Digital Assets

Down Under just cut the wires on a massive crypto-cleaning racket. A criminal syndicate—masquerading as a legit security firm—got caught red-handed washing $123 million in dirty digital dough. Who said crime doesn’t pay? (Though apparently, it doesn’t pay well enough to avoid getting busted.)

Operation ‘No More Rinse Cycle’: Authorities swooped in after tracing blockchain breadcrumbs—turns out, transparency isn’t great for business when your business is fraud. The group allegedly used mixers, shell companies, and the classic ‘hope no one looks too hard’ strategy.

Bonus finance jab: Meanwhile, traditional banks still move more illicit cash before lunch than crypto does in a year—but sure, let’s blame the tech.

$123M Crypto Laundering Ring Busted

On Monday, the Australian government announced it had dismantled a money laundering ring operating behind a security company. The Queensland-based organization allegedly smuggled cash around Australia and laundered millions of dollars from criminals over the past few years.

As a result, four people, including two executives of the security company and two individuals who allegedly helped funnel the laundered money through third-party companies, were charged with multiple counts of money laundering offences last Friday.

In December 2023, the Queensland Joint Organized Crime Taskforce (QJOCTF), comprised of 70 officers from multiple federal and state agencies, began investigating suspicious financial transactions linked to a Heathwood man and a security company.

The multi-agency investigation found that the company had received millions of dollars from suspicious third-party transactions. Although the source of the funds has not been identified, authorities discovered that the security firm converted $190 million, worth around $123 million, into cryptocurrencies.

The QJOCTF alleges that the Gold Coast-based security company had a complex network of bank accounts, businesses, couriers, and crypto wallets to launder millions of dollars from illicit funds.

The company allegedly transferred cash between businesses and banks and mixed funds from its legitimate business arm with illicit money from suspected criminals. Additionally, the firm reportedly channeled the money through a web of transactions, including a sales promotion company, a classic car dealership, and crypto exchanges.

Then, the criminal organization paid out to its beneficiaries using crypto or the associated third-party companies.

According to the announcement, the Heathwood man controlled the sales promotion company, which received AUD 9.5 million, or $6.19 million, in cash and cryptocurrencies from the security firm over 15 months.

Meanwhile, the director from the classic car dealership received AUD 6.4 million, approximately $4.17 million, from the security company and allegedly laundered it through his business over a 17-month period.

The car dealership director reportedly opened at least seven bank accounts with different banks to conceal the source of the money. The illicit funds were then allegedly mixed with legitimate money from the company before being transferred to the sales promotions business.

Australian Authorities Fight Organized Crime

The Criminal Assets Confiscation Taskforce (CACT) seized $13.7 million in assets across Queensland and New South Wales, suspected of being the proceeds of crime.  Additionally, the QJOCTF seized multiple wallets containing $110,000 in cryptocurrencies, $19,560 in cash, encrypted devices, business records, and documents related to the alleged money laundering scheme.

Australian Taxation Office (ATO) Deputy Commissioner John Ford affirmed that “Serious and organised crime harms our community, economy, government and way of life, and robs the community of funding for essential services such as health and education.”

Similarly, the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) National Coordinator, Law Enforcement, Markus Erikson, underscored the importance of businesses and individuals who report to the agency, affirming that, “without their reporting, this disruption WOULD not have been possible, and the offending may have continued undetected.”

Recently, Australia’s financial authorities and federal police warned that scammers are also using crypto ATMs to drain wallets across the country, and implemented new measures to keep users safe.

As reported by Bitcoinist, AUSTRAC announced a AUD 5,000, or $3,250, cash deposit and withdrawal limit at Crypto ATMs in the country, starting June 3, 2025. The new rule follows unique reports from 150 individuals, mostly over the age of 50, about crypto ATM scams, with the losses nearing $2 million between January 2024 and January 2025.