How a $123M crypto scam in Australia laundered millions through a ‘legit’ business

A $123 million crypto scam in Australia was uncovered after an 18-month investigation by multiple agencies including the Australian Federal Police, Queensland Police Service, and the Australian Criminal Intelligence Commission. The scam laundered illicit funds through a legitimate-looking cash-in-transit security company that acted as a front.

The scheme worked by mixing illegal money with legitimate cash flows via the security firm. The laundered money was then funneled through other legitimate businesses such as a sales promotion company and a classic car dealership.

These businesses were used to commingle illicit proceeds with legitimate earnings, masking the origins of the money. Finally, the funds were converted into cryptocurrencies via various exchanges, exploiting the relative anonymity and complexity of crypto transactions to further obscure the money trail.

Authorities seized crypto assets, cash, documents, and froze properties and bank accounts worth around $21 million. Four suspects including company directors and business owners were charged with crimes related to dealing with illicit proceeds and document forgery.

This case highlights the sophisticated use of apparently legitimate businesses to launder large sums of illicit crypto-related funds and underscores the need for strong Anti-Money Laundering (AML) controls and regulatory oversight in both traditional and crypto financial sectors.

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