NSW Police Confiscate Bitcoin Worth $4.1M in Major Darknet Operation
In a significant darknet investigation, New South Wales Police confiscated 52.3 Bitcoin valued at approximately $4.1 million, coinciding with AUSTRAC's enhanced cryptocurrency AML oversight.
Law enforcement cybercrime investigators in Australia have confiscated 52 Bitcoin with a value of 5.7 million Australian dollars ($4.1 million) in what authorities describe as among the nation's most significant operations targeting illicit darknet marketplaces utilizing cryptocurrency.
The operation, known as Strike Force Andalusia and conducted by the State Crime Command's Cyber Crime Squad, resulted in the confiscation of cryptocurrency valued at $4.1 million and the apprehension of two individuals connected to a darknet marketplace that was being run from Ingleburn in Sydney after a 15-month inquiry, according to a Wednesday announcement by the New South Wales Police Force.
Authorities stated that two males, ages 41 and 39, purportedly maintained access to the digital currency wallet. The individual aged 41 has been scheduled for a court appearance at Campbelltown Local Court on May 13, whereas the 39-year-old individual faces a court date at Batemans Bay Local Court on June 15.
Law enforcement officials carried out a search warrant at a residence located in Ingleburn on May 4, during which they confiscated electronic equipment and reportedly discovered 52.3 Bitcoin that authorities will claim represent proceeds derived from unlawful darknet operations.
This operation represents one of the most substantial documented darknet-connected cryptocurrency confiscations in Australian history. The seizure occurs five years following Victoria Police's confiscation of digital currency valued at $6.2 million from an unlawful darknet operation in August 2021, according to reporting by local media outlet 9News.
This is one of the biggest cryptocurrency seizures in the nation's history and a clear reminder that criminal activity on the darknet is not anonymous,
Detective Superintendent Matt Craft
Detective Superintendent Matt Craft further stated that darknet marketplaces continue to be "a key enabler of serious criminal activity."
Cointelegraph reached out to NSW Police seeking clarification on whether the investigation team had secured access to seed phrases or had otherwise gained control over the confiscated Bitcoin.
Australia steps up AML supervision for crypto platforms
This confiscation arrives at a time when Australia's financial intelligence and Anti-Money Laundering regulatory body, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has intensified its oversight of the nation's digital asset industry.
On Friday, AUSTRAC announced the initiation of two campaigns targeting virtual asset service providers (VASPs) that provide over-the-counter cryptocurrency-to-cash services and domestic exchanges conducting operations within the country.
Within this reform framework, Australia has also embraced the internationally recognized VASP terminology, substituting the prior more restrictive definition of digital currency exchanges (DCE).
These campaigns aim to evaluate and enhance AML risk management practices throughout Australia's virtual asset industry. The initiative involves AUSTRAC collaborating with 36 cryptocurrency businesses and 27 domestic crypto exchanges to review and strengthen business models and the oversight of AML risks.
AUSTRAC is checking how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force,
Brendan Thomas, AUSTRAC CEO
Australia has additionally enacted the Corporations Amendment (Digital Assets Framework) Act 2026, which obtained Royal Assent on April 8 and is set to incorporate digital asset platforms and tokenized custody platforms within the financial services licensing framework starting from April 9, 2027.