$190 Million in Crypto Washed: Australia Cuts Off ‘Sophisticated’ Money Laundering Ring

09/06/2025 admin

Key Takeaways:

A cross-agency effort led to Queensland-based and larger-scale Queenslander launder over $190 million through cryptocurrency.
Four men, including the executives of a security firm, have been accused of serious fraud related to cryptocurrencies and international money laundering.
The scheme used couriers, fake companies and cryptocurrency exchanges to conceal the dirty money, authorities say.

An 18-month investigation by Australian authorities has revealed one of the most intricate crypto-run money laundering operations in the country so far. Millions of dollars were purportedly laundered through an elaborate tangle of companies, cryptocurrency wallets and sham directors.

A $190 Million Crypto Trail: One of Australia’s Biggest Laundering Cases

The Australian Federal Police (AFP) announced a major breakthrough on June 9, 2025, in a joint operation involving the Queensland Police Service, Australian Border Force, AUSTRAC, the Australian Criminal Intelligence Commission, and the Australian Taxation Office.

The armored transport arm of a Queensland security company is a front for laundering as much as $190 million in dirty cash from crime gangs, most of which was converted into cryptocurrency, authorities claim. The activities are reportedly an attempt to conceal the transfer of funds by organized crime, with crypto currencies being used as a smoke screen to hide the path of the money.

Crypto: A Powerful Tool for Criminals—and Now for Investigators

According to the AFP, a Brisbane man (32) from Heathwood used a company under his wife’s name to launder approximately $9.5 million in cash and crypto over 15 months. He allegedly maintained full control while keeping his own name off the company’s official records.

Investigators traced how the security company mixed legitimate business proceeds with illicit deposits, routed through promotional companies, luxury car dealerships, and ultimately converted to crypto via exchanges. Some of the cash was allegedly collected through “dead drops” across Australia and transported by air cargo to Southeast Queensland.

Authorities seized approximately $170,000 in crypto wallets, $30,000 in cash, and a cache of encrypted mobile devices. The Heathwood man now faces up to 12 years for money laundering and 10 years for refusing to provide his phone’s password—an offense under Australia’s cybercrime laws.

How the Scheme Worked: A Hard-to-Trace Crypto-Laundering Operation

Blending of Dirty Money With Clean Crypto Use

The QJOCTF (Queensland Joint Organized Crime Taskforce) claim that the washing operation was conducted via the security-mined company’s cash transit service. The company reportedly collected millions in undeclared cash from couriers and then deposited it alongside its legitimate business income. To skirt detection, the company reportedly:

Transferred money through shell companies such as a sales promotion company and a classic car dealer
Operated through several bank accounts and crypto exchange services to make the money trail less clear
Withdrawn money in the form of cryptocurrency or via a third party

One of the alleged beneficiaries, a 58-year-old man from West End, reportedly used a luxury car dealership to launder $6.4 million in 17 months. He opened at least seven accounts with different banks and mixed criminal proceeds with business revenue before funneling them back to the Heathwood man’s promotional company.

Regulatory Agencies Are Taking Crypto Crime Seriously

The charges include dealing with the proceeds of crime valued at over $1 million, forged documents, and identity misuse, with penalties ranging from 12 years to life imprisonment. Notably, this case underlines the expanding legal scrutiny on crypto-related activities in Australia.

Authorities say their work is not over. The source of the full $190 million remains under investigation. Det. Superintendent Adrian Telfer of the AFP emphasized the national security threat posed by crypto-laundering operations.

“Criminals are using crypto and shell companies to create complex webs of deception,” said Telfer. “This investigation proves that multi-agency collaboration is vital to penetrate these networks.”

What This Means for the Crypto Industry in Australia

The case has triggered renewed calls for tightening crypto regulation in the country. While the Australian government has already introduced mandatory KYC/AML measures for exchanges, experts warn that laundering operations will continue to exploit gaps in P2P transactions, privacy tokens, and offshore wallets.

The government is also considering legislation to extend “tracing orders” and increase penalties for non-cooperation in decrypting crypto wallets or refusing to comply with digital access orders—measures that could directly impact how crypto custodians and wallet developers operate in Australia.

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