Australian police seize $142k in crypto with new confiscation powers

Victoria Police have seized more than $140,000 in crypto assets this year after a recent law change gave them new seizure powers.

Victoria Police recently seized $142,679.10 in cryptocurrency as part of a drug trafficking investigation, according to its annual report. This was the first successful crypto asset seizure under the updated laws.

Amendments to the Confiscation Act 1997, effective from August 2023, have given law enforcement the ability to control cryptocurrencies as soon as they are discovered.

New powers in this law allowed detectives to seize assets during the investigation; these included “recovery phrases,” a series of unique words linked to a digital wallet that provides access to stored crypto assets. According to the report, Victoria Police used these statements to access six separate wallets containing various cryptocurrencies.

The seized coins were not detailed in the police report.

Global police fight crypto crimes

The operation highlights the impact of recent legislative changes aimed at combating crimes related to digital assets. Seizing illicit crypto assets is not new, as global police forces are intensifying efforts against illegal use. However, the latest changes are part of a broader Australian government response to cryptocurrency’s increasing role in illegal activities.

In October, Binance cooperated with the Delhi Police to dismantle a scam linked to “M/s Goldcoat Solar,” a fake entity that falsely advertised ties to India’s renewable energy sector. The operation resulted in the arrest of multiple people and the seizure of over $100,000 worth of stablecoins.

Around the same time, Hong Kong police busted a deepfake crypto romance scam that defrauded individuals of $46 million. The operation led to the arrest of 27 people, including alleged university graduates and triad members who created fake trading platforms to deceive victims.