Australian authorities have seized assets worth $2.88 million USD—including nearly 25 Bitcoin, a waterfront mansion, and a Mercedes-Benz—in connection with a long-running investigation into a historic cryptocurrency theft.
The Australian Federal Police (AFP) announced on May 18 that the confiscation followed a court-approved forfeiture order targeting a Queensland man believed to have profited from the proceeds of cybercrime. The seizure was carried out despite no new criminal charges being filed.
The AFP-led Criminal Assets Confiscation Taskforce (CACT) traced the assets back to a broader probe that began in 2018, after law enforcement in Luxembourg flagged suspicious Bitcoin transactions. The activity reportedly led investigators to the Queensland resident, previously convicted for hacking a U.S.-based video game company.
Further investigation linked the individual to the 2013 theft of 950 Bitcoin from a French cryptocurrency exchange—a case that remains unresolved in criminal court but served as grounds for the asset seizure under Australia’s Proceeds of Crime Act. The court ruled that the assets could not be connected to any legitimate source of income.
The seized property will be liquidated, with proceeds directed to the government’s Confiscated Assets Account, which funds national security and crime prevention efforts.
Queensland Hacker Tied to Multiple Cybercrime Cases
According to local news reports, the individual involved—identified as Duffy—was convicted in 2016 for fraud and computer offenses after selling stolen personal data of League of Legends users. Though he was not directly involved in the 2011 Riot Games breach, which affected more than 5 million accounts, prosecutors said Duffy obtained the data via underground sources and resold it for profit.
He was also accused of hacking the X (formerly Twitter) account of Riot Games president Marc Merrill, which he allegedly used to promote access to compromised player accounts—part of a wider scheme targeting the gaming industry.
AFP Commander Jason Kennedy highlighted the broader implications of the case, noting,
“The AFP has unique powers to restrain and forfeit assets suspected to be the proceeds of crime, including cybercrime.”
Australian Taskforce Targets Crypto-Fueled Crime Rings
The Criminal Assets Confiscation Taskforce continues to expand its footprint in targeting tech-enabled criminal operations. Since mid-2019, the taskforce has restrained over $770 million in suspected criminal assets—including real estate, luxury goods, fine art, and increasingly, digital currencies.
Proceeds from seized assets are funneled into the Commonwealth Confiscated Assets Account, supporting a variety of crime prevention and law enforcement programs across Australia.
Crypto-related seizures are becoming more common. In October 2024, CACT restrained $6 million in digital assets linked to Ghost, an encrypted messaging app under Operation Kraken. It also confiscated $500,000 in cryptocurrency tied to an illegal firearms network and $330,000 from a Gold Coast money laundering investigation.
The growing number and complexity of digital asset seizures reflect CACT’s evolving role in tackling modern criminal networks. Enhanced blockchain forensics have empowered authorities to trace digital funds across borders and pseudonymous accounts, sending a clear message to cybercriminals: hiding wealth in crypto is no longer a guaranteed safe haven.
By deploying its powers under the Proceeds of Crime Act, Australian law enforcement continues to demonstrate its commitment to policing the digital frontier—ensuring that even decade-old offenses can still lead to major asset forfeitures in the present day.
Quick Facts
- Australian Federal Police have seized $2.88 million USD in assets, including 25 BTC, a luxury home, and a Mercedes, linked to a 2013 crypto exchange hack.
- The assets were tied to a Queensland man previously convicted of fraud and data theft related to the gaming industry, but no new criminal charges have been filed.
- The confiscation falls under Australia’s Proceeds of Crime Act, which allows law enforcement to seize property not linked to legitimate income.
- Since 2019, the Criminal Assets Confiscation Taskforce has restrained over $770 million in suspected criminal assets, with a growing share tied to cryptocurrency.
