Victoria Police have successfully seized cryptocurrency assets valued at $142,679 since August 2023 according to their annual report. This marks the first such confiscation since recent amendments to the state’s Confiscation Act 1997.
The new provisions empower Victoria’s law enforcement with expanded abilities to access and control digital assets during investigations into illegal activities.
$142K Crypto Seizure: How Australian Police Did it
The success of this seizure stems from the addition of “SECT 92A Seizure of Digital Assets Under Search Warrant” to the Confiscation Act, which enables authorities to access various digital assets, including cryptocurrencies, during search warrants.
During the recent drug investigation, police uncovered several “seed phrases,” or recovery codes, in documents seized from suspects.
These phrases allowed the Cryptocurrency Operations team to access six cryptocurrency wallets holding assets related to the investigation.
These new powers have strengthened the state's anti-money laundering (AML) and anti-terrorism financing efforts by facilitating the seizure of digital assets tied to criminal activity.
The recent seizure marks a significant development in the state's efforts to modernize crime-fighting tools to adapt to evolving technological landscapes.
Under the new law, officers are authorized to secure devices containing or facilitating access to crypto assets, including hardware wallets.
They are also authorized to intercept digital communication tools, alter crypto holdings, and conduct transactions to gain control over assets.
These provisions were instituted due to the growing threat of cryptocurrency being used as a conduit for anonymous, cross-border transactions in criminal enterprises.
The authorities view the risk of unmonitored financial channels seriously, especially given the increased adoption of cryptocurrency in Australia and globally.
Global Context of Crypto Seizure Efforts and Law Enforcement
The shift in Victoria's asset seizure approach follows a global trend in which governments and regulatory bodies implement robust measures to monitor and restrict illegal financial flows via digital assets.
The changes in Victoria's laws are part of a larger government initiative to regulate the crypto space more rigorously.
This initiative includes moves by the Australian Securities and Investments Commission (ASIC), which is preparing Australia to implement new regulations requiring many crypto firms to obtain financial services licenses under the Corporations Act.
While crypto doesn't always align neatly with traditional financial categories, ASIC plans to release new draft guidance in November to clarify which digital tokens and products fall under these requirements.
The updated guidance seeks industry feedback and aims to ensure millions of Australians investing in crypto can benefit from established consumer protections.
Not only in Australia, the Victoria Police's landmark seizure comes amid heightened regulatory actions targeting crypto-related crimes globally.
Numerous law enforcement agencies have begun addressing digital asset misuse, with countries like London, the U.S., and India recently undertaking high-profile cryptocurrency seizures linked to criminal operations.
— Cryptonews.com (@cryptonews) October 31, 2024
A 16-year-old from East London is accused of using cryptocurrency to fund Al Qaeda, allegedly raising $1,300 and offering cybersecurity skills to extremist groups.#Crypto #Terrorismhttps://t.co/fXVr1zzTgn
Just today, October 31, A 16-year-old from East London faces accusations of using cryptocurrency to raise funds and offer cybersecurity services to terrorist groups like Al Qaeda and the Pakistani Taliban.
Though he denies all charges, prosecutors claim he ideologically supported these groups, raising concerns over crypto's potential misuse in financing terror.
Globally, authorities scrutinize cryptocurrency's role in illicit activities as terrorist organizations increasingly turn to it for funding.
UN officials have noted that traditional systems like cash and hawala remain prominent, but digital assets, including privacy coins and online wallets, complicate financial tracking.
The post Australian Police’s New Powers Yield $142K Crypto Seizure appeared first on Cryptonews.
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