Cybercrime Squad detectives examine computers as part of their investigation into the Bitcoin held in the cryptocurrency wallet. Photo: NSW Police.
Police investigating potential illegal dealings on the darknet have seized $5.7 million-worth of cryptocurrency, raided homes in Batemans Bay and Sydney, and arrested two men who had been living “an anti-authoritarian lifestyle”.
A NSW Police spokesperson said detectives had been investigating a large amount of Bitcoin held in a cryptocurrency wallet. This Bitcoin was believed to be proceeds of illegal activity on darknet marketplaces.
“Darknet marketplaces are online illicit markets that offer a range of illegal goods and services, including prohibited drugs and weapons,” the spokesperson said.
As a result of their investigation, police alleged two men, aged 41 and 39, had access to this wallet.
Officers then raided a home in Surfside, just north of Batemans Bay, and seized several electronic devices.
“During forensic analysis of those devices, detectives uncovered and seized $47,000 worth of cryptocurrency,” the police spokesperson said.
The 39-year-old man was arrested and taken to Batemans Bay Police Station, where he was charged with dealing with the proceeds of crime worth over $5 million and other offences.
He is scheduled to face the Batemans Bay Local Court on 15 June.
Police charged the 41-year-old man with property proceeds of crimes worth over $100,000 for his alleged involvement in the transfer of the cryptocurrency.
He will face the Campbelltown Local Court on 13 May.
Police also raided a home in Ingleburn, about 45 km south-west of Sydney, on Monday (4 May), and seized electronic devices.
They allegedly uncovered 52.3 Bitcoin, which was worth around $5.7 million at the time, on the devices. These Bitcoins are alleged to be the proceeds of illegal darknet activity.
“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,” said Detective Superintendent Matt Craft, the Commander of State Crime Command’s Cybercrime Squad.
On Wednesday (6 May), Detective Chief Inspector Jason Smith of the Cybercrime Squad said this seizure was a significant result for his squad.
“Initially, police received intelligence that the two men were involved in darknet drug markets,” he said.
“We then commenced an investigation that went for 19 months. It was a very complex and technically focused investigation.”
He said the two men were typical of those who are involved with darknet markets, as they were “living that type of anti-authoritarian lifestyle”.
Chief Inspector Smith said the investigation was ongoing, but he believed police had “the bulk of the cryptocurrency”.
“This type of investigation is inherently difficult. These people are taking active steps to hide the cryptocurrency to launder funds,” he said.
“This should send a strong message to anyone that if you want to use anonymising techniques such as encryption or darknet markets to conduct illicit activity or launder funds, we will monitor you, and ultimately, we will come through your door.”
Original Article published by Albert McKnight on Region Canberra.
