Australia busts $124 million cryptocurrency money laundering ring: Security firm a front?
Brisbane, Queensland A major investigation led by the Australian Federal Police (AFP) has uncovered a complex money laundering network that involved converting more than $124 million in cash into cryptocurrency, resulting in four individuals being charged and $13.7 million in assets being frozen.
The disguised security firm at the heart of the money laundering ring
At the heart of the alleged money laundering operation was a Gold Coast-based security firm that operated in the armored cash transportation business. However, rather than simply protecting assets, the company allegedly used its facilities and personnel to disguise and convert illicit cash flows into cryptocurrency to hide its tracks from law enforcement.
The Queensland Joint Organised Crime Task Force (QJOCTF) said the suspects mixed cash from legitimate businesses with illicit funds through a network of front businesses, including a classic car dealership, a sales promotion company, multiple bank accounts, and e-wallets.
Sophisticated money laundering techniques: “Dead drops”, domestic deliveries and crypto
Authorities said the group operated “dead drops” across Australia, where cash suspected of being from criminal organisations was “dropped off” and then collected by delivery staff. The money was packaged as normal goods and transported by domestic air to Queensland’s money laundering processing centre, where it was converted into cryptocurrency via multiple wallets and exchanges to “clean” the flow of money.
AUSTRAC, Australia’s financial regulator, and the Australian Taxation Office (ATO) have worked together to provide surveillance data and in-depth analysis to help trace the money. Fourteen search warrants were executed at locations in Brisbane and the Gold Coast, involving more than 70 officers.
The aftermath and warnings from the authorities
AFP Detective Inspector Adrian Telfer warned that this was one of the most sophisticated schemes the force had ever uncovered:
“We allege that this group actively concealed and misrepresented the source and nature of the illicit proceeds, exploiting legal gaps in digital asset transactions to evade regulatory scrutiny.”
David Briese, Queensland Police Service’s acting superintendent of investigations, highlighted the damage to the community caused by this activity:
“Money laundering is not just a financial crime. It feeds into more serious criminal activities such as drug trafficking, human trafficking, fraud and organised violence.”
Facing lengthy prison sentences
The four suspects arrested are now facing serious criminal charges under the Australian Criminal Code and the Crimes Act, with sentences of up to 20 years in prison if convicted. Investigations into the individuals involved and the wider money flows are ongoing.
Assessment
This case continues to raise concerns about the misuse of cryptocurrencies in cross-border money laundering, particularly given the lack of regulation of digital assets. It also poses an urgent need for governments and the technology industry to increase supervision, transparency and control of digital asset transactions, to avoid technology being turned into a tool for crime.