Australian Money Laundering Scheme Busted: A$190M Converted to Crypto

Four people have been arrested for allegedly laundering millions of dollars in suspected criminal funds through “a complex web of deception” that included transactions via crypto exchanges, in an investigation led by the Australian Federal Police (AFP). 

The alleged money laundering ring operated primarily out of a Gold Coast-based security company, and those charged include a man and woman who were the director and general manager of the firm. By following the money trail, it was discovered the company had transferred AUD$190 million in cash into cryptocurrency.

This investigation has unravelled a sophisticated operation that allegedly moved illicit cash around the country using dead drops and couriers before washing it through a network of seemingly legitimate businesses in South-East Queensland.

AFP Detective Superintendent Adrian Telfer

AFP Detective Superintendent Adrian Telfer said the “tainted money” from the scheme was used to purchase property, bank accounts, crypto and luxury cars valued at around $21 million, which were seized during the raids. Seized crypto wallets contained about $170,000 in cryptocurrency.

Related: Queensland Man Loses 25 Bitcoin, Waterfront Mansion and Mercedes in AFP Asset Forfeiture

The crime was uncovered after an 18-month, multi-agency investigation that resulted in 14 search warrants being executed at homes and businesses across Brisbane and the Gold Coast in early June. Agencies involved include the AFP, Queensland Police Service, Australian Border Force, the Australian Criminal Intelligence Commission, AUSTRAC and Australian Taxation Office.

How The Money Laundering Scheme Worked

In addition to the couple running the security firm, two Brisbane men were charged: one was allegedly a major client of the money washing scheme; and the other allegedly funnelled laundered money through a business account to an account controlled by the ‘client’. Those charged include:

• A Gold Coast man, 48, and woman, 35, each charged with a money laundering offence and dealing with the proceeds of general crime. 
• A Brisbane man, 58, from West End, charged with two money laundering offences.
• A 32 year-old Brisbane man, from Heathwood, charged with money laundering and failing to provide the password to a mobile phone.

The Gold Coast security business offered armoured transports to its clients, transferring cash and other valuables from legitimate businesses to banks through South-East Queensland. But Det Supt Telfer said it was “truly a national operation, laundering the profits of criminal ventures across this country.”

• Criminal proceeds were left at drop sites around the country and then flown into Queensland to be washed.
• The security company’s couriers collected the funds, which were spread across multiple bank accounts and mixed with legitimate business funds before being transferred.
• The money was then returned to individuals by being funnelled through various transactions including payments to a sales promotion company, a classic car dealership and cryptocurrency exchange services.

Queensland Police Service Crime and Intelligence Command, Detective Acting Superintendent David Briese, from the Drug and Serious Crime Group said the case demonstrated “the extreme lengths criminals will go to conceal their illicit gains.”