The lascivious side of cryptocurrency – money laundering, terrorist funding, and outright fraud – is an always present danger. It is an aspect of crypto news that keeps prospective investors from joining the fray. That said, these schemes are being uncovered and busted up all the time.
In recent news, Australia’s Queensland Police made a substantial bust. In the end, police managed to bust a money-laundering scheme worth an estimated $190 million AUS converted into cryptocurrency. It is just one story of many when it comes to crypto-related crimes.
Four Arrested in “Elaborate” Cryptocurrency Money Laundering Scheme
Australian Queensland police made a critical arrest, charging four people that were allegedly involved in a complex money laundering scheme worth millions. The alleged scheme involves smuggled cash, not to mention millions of dollars that were “washed” through legitimate Australian businesses.
Police seized luxury cars that were allegedly purchased using “tainted money.” On top of that, bank accounts have been seized and frozen, allegedly worth more than $21 million. A detective noted that this group washed millions of dollars through “multiple Australian businesses.”
It was noted that some of the businesses involved in this scheme had arms that were both legitimate and illegitimate, making the investigation far more complex in the process.
Detective Superintendent Adrian Telfer said, “This investigation has unraveled a sophisticated operation that allegedly moved illicit cash around the country using [cash] dead-drops and couriers, before washing it through a network of seemingly legitimate businesses in southeast Queensland.”
Police say that these dead drops were a key component in these organized crimes, something that police have been dealing with for a long time. Dead drops are where cash is left a ta pick-up point of some sort, typically in a car or at a park, though locations aren’t limited to those two spots.
Security Firm at the Heart of Crypto Scam
Investigators believe that at the heart of the investigation is a Gold Coast-based security firm. This firm offered armored transport services to its clients. Police say that this business transferred valuables and cash assets between businesses and banks, ultimately converting over $190 million into cryptocurrency.
As part of the investigation, police are still looking into the source of the money. It has been alleged that the business was mixing in cash from the legitimate arm of its business with funds illicitly acquired and deposited from prospective criminals.
Some of the businesses alleged to have been involved in this scheme included a cryptocurrency exchange service, a classic car dealership, and a sales promotion company.
In specific, police charged a 32-year-old man. This man is alleged to have been linked to the “majority” of the properties in question, not to mention a “client” of the security business. The man is alleged to have controlled the aforementioned sales promotion company, receiving $9.5 million in cryptocurrency and cash. Those assets are alleged to have originated from the security company across a 15-month period.
The Suspects
In addition to the list of charges mentioned above, the 32-year-old man has also been charged with money laundering and failing to give police the passcode to his mobile device.
On June 6, both a 35-year-old woman and 48-year-old man – the alleged owners of the security firm in question – were both charged as well.
A 58-year-old man – allegedly the direct of the classic car dealership – is said to have received $6.4 million from the security firm. He has also been charged and is set to face the Brisbane Magistrates Court in August.
In an effort to hide its efforts and the source of funds from law enforcement, the security company is alleged to have channeled money through a variety of web transactions. It then paid out the funds to select beneficiaries using third-party companies or cryptocurrency directly.
The man, according to the QJOCTF, tried to distance himself from the laundering scheme. He did this by trying to place his wife as a “straw director” of the promotions company, though he remained in control behind the scenes.
The director of the car dealership is alleged to have received $6.4 million from the security company, laundering it through his business over a period of 17 months. He allegedly opened at least seven different bank accounts across different institutions in order to conceal the money source as he moved it.
Illicit funds were then allegedly mixed into the legitimate money made by the car dealership, before ultimately moving to the sales promotion business. The security company is believed to be the front for millions in illicit cash for laundering purposes.
The cash is alleged to have been generated through organized crime. Cash was left at dead drop locations throughout Australia, eventually connected by an array of couriers, who sent it on flights as domestic cargo to Queensland. Couriers from the security company then collected the money in Southeast Queensland.
Crypto Money Laundering a Growing Concern
Though authorities have made significant ground in this bust, the issue of money laundering is one that continues to pose a challenge for investigators and law enforcement. This is just the latest – and arguably one of the biggest – in a line of crypto-related schemes.
Between January 2024 and January 2025, Australians reportedly lost more than $3 million in ATM-related scams. That said, it is believed by experts that these numbers are a gross underestimation, mostly due to a lack of reporting.
Given that $275 million flows through those crypto ATMs, it is a growing concern for law enforcement and regulatory bodies. Even worse, these money laundering schemes have shown to be linked to illegitimate activities like organized crime and drug trafficking.
The Australian government is continuing to evolve in an effort to stifle these activities. For instance, the government has implemented new rules for ATM operators like refusing registration for non-compliant operators, transaction limits, and more. The Australian Federal Police already have a unit specifically dedicated to seizing cryptocurrency related to illicit activities. So far, the AFP has seized more than $1.2 billion in assets, the majority related to crypto.
Crypto Critics Cite Money Laundering as Downside
Those who have stood in staunch opposition of the integration of cryptocurrency point to activities like these. Money that originates from illicit activities can eventually find its way into the legitimate arm of businesses, ‘washing” it and eventually funneling it to criminal activities.
This is a challenge across all walks of life, not just cryptocurrency. More and more jurisdictions are taking comprehensive measures to crack down on these illicit activities, working to stop them before they pop up.
As mentioned previously, crypto ATM scams are becoming far more common. There have been more than 150 reported incidents. The most common scams were investment scams, romance scams, and extortion emails, with the most likely victims being women over the age of 50.
Until reporting becomes more comprehensive, we will not know truly how many of these scams happen each year. With Australia’s efforts to remain at the forefront of the cryptocurrency market, authorities will continue to face challenges in governing that market. Scams always become more elaborate, which means that authorities must remain vigilant and always adapting in order to keep up.
