Authorities in Australia have seized a luxury waterfront property, a Mercedes-Benz, and approximately 25 Bitcoin from a Queensland resident, citing connections to suspected proceeds of criminal activity.
The total value of the confiscated assets is estimated at 4.5 million Australian dollars (around $2.88 million). This action followed a court-ordered forfeiture secured by the Australian Federal Police (AFP).
On May 18, the AFP announced that the seizure was conducted under the Proceeds of Crime Act, following findings by the Criminal Assets Confiscation Taskforce (CACT) that the assets could not be linked to legitimate earnings.
Traces of Bitcoin Prompt Investigation Initiation
The probe into Bitcoin-related criminal activities began in 2018 when authorities in Luxembourg flagged a series of suspicious transactions. According to the AFP, these transactions eventually led to the Queensland man, who has a previous conviction for cybercrime in the United States.
Local news outlets have identified him as Shane Stephen Duffy, known for his involvement in a notorious hacking and fraud case. In 2016, Duffy pleaded guilty to selling the private information of players from the online game League of Legends.
While he did not participate directly in the 2011 cyberattack on Riot Games—an incident that compromised the data of over five million users—Duffy is alleged to have obtained the stolen data through other means and profited from its distribution.
In addition, authorities have linked Duffy to the theft of 950 Bitcoin from a French cryptocurrency exchange in 2013. Although no charges were filed regarding that theft, the AFP contended that the confiscated assets, including the Bitcoin, may have originated from that case or other illicit ventures.
The AFP-led Criminal Assets Confiscation Taskforce (CACT) has secured the forfeiture of more than $4.5 million worth of assets, including a Queensland waterfront mansion, luxury car, and Bitcoin, after identifying them as suspected proceeds of crime. https://t.co/Wglk0m5K50
— AFP (@AusFedPolice) May 17, 2025
AFP Commander Jason Kennedy emphasized that the agency’s role goes beyond prosecuting cybercrime—it’s also about reclaiming the financial gains acquired through illegal means. “The profits derived from criminal activities are also often used to fund further criminal acts,” Kennedy stated, noting that funds recovered are redirected to assist community crime prevention and law enforcement initiatives.
The seized assets will be sold, with proceeds allocated to a specialized fund aimed at bolstering law enforcement and crime reduction efforts nationwide. Since mid-2019, the CACT has placed restraints on over $1.2 billion in assets, which include luxury homes, vehicles, cryptocurrency, and fine art. This movement reflects an intensified crackdown on digital and financial crimes throughout Australia.
New Regulations for Crypto Exchanges in Australia
Recently, Australia’s financial intelligence agency announced it would enhance its oversight of cryptocurrency exchanges, warning that platforms with no recent activity could face deregistration if they fail to withdraw voluntarily.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) indicated that many registered digital currency exchanges seem to have ceased operations while remaining listed, which poses a risk of criminal exploitation within the system.
AUSTRAC has begun reaching out to exchanges that appear inactive among the 427 businesses currently registered. “Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,” the agency noted.
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