Australian Man Loses Bitcoin & Luxury Mansion In AFP Crackdown

$2.88 Million In Assets Seized

The seizure, announced by Australia’s Criminal Assets Confiscation Taskforce (CACT) on May 18th, involved nearly 25 Bitcoin, a waterfront mansion, and a Mercedes-Benz car. The total value of the confiscated assets stands at approximately 4.5 million Australian dollars, equivalent to around $2.88 million USD.

The AFP said its investigation dates back to September 2018, triggered by a tip-off from Luxembourg law enforcement. Authorities there had flagged suspicious Bitcoin transactions which were reportedly linked to the Queensland man. He had previously been convicted in connection with a hacking incident targeting a U.S.-based gaming company.

Links To 2013 French Crypto Exchange Theft

Further investigations uncovered additional troubling connections. According to the AFP, the Queensland man was allegedly tied to the high-profile theft of 950 Bitcoin from a French cryptocurrency exchange in 2013.

Source: X (@AusFedPolice)

While no formal criminal charges have been filed against the man concerning the Bitcoin theft, Australian authorities were able to pursue asset forfeiture through civil proceedings.

In April, the AFP obtained a court order under the Proceeds of Crime Act to seize the man’s property, vehicle, and cryptocurrency holdings. The court determined that the assets could not be directly linked to any “identifiable legitimate earnings.”

AFP Leverages Special Powers To Target Cybercrime

According to Commander Jason Kennedy of the AFP, the agency utilized its “unique powers” under the Proceeds of Crime Act to restrain and seize the assets. These powers allow authorities to confiscate assets they suspect are connected to unlawful conduct, even in the absence of a formal criminal conviction.

Kennedy emphasized the importance of these powers, especially in combating cybercrime:

“The profits derived from criminal activities are also often used to fund further criminal acts. That’s why the AFP, working closely with the CACT, targets the proceeds of crime to ensure they are removed from the hands of criminals and reinvested into the community.”

 

Assets Belong To Convicted Hacker Shane Stephen Duffy

According to local news outlet 7NEWS, the man at the center of the investigation is Shane Stephen Duffy. Duffy is no stranger to legal trouble. In 2016, he pleaded guilty to charges of fraud and computer hacking for selling stolen personal data belonging to players of the popular online game, League of Legends.

The origin of the data dates back to a 2011 cyberattack on Riot Games, the developer behind League of Legends. The attack led to the compromise of more than 5 million user accounts. While Duffy was not implicated in the actual breach, prosecutors claimed he acquired the stolen data through online channels and later sold it for personal profit.

Duffy was also accused of hacking the X account of Marc Merrill, the president of Riot Games. He allegedly used Merrill’s account to promote his illegal services, which included selling access to various player accounts.

Proceeds to Be Reinvested in Crime Prevention

The AFP confirmed that the value recouped from the sale of the confiscated assets will be redirected into a special fund. This fund is earmarked for crime prevention initiatives and law enforcement support across Australia.

Commander Kennedy reiterated the agency’s commitment to ensuring that wealth generated through illegal means is not allowed to be enjoyed freely:

“The community deserves to know that these assets are not funding criminal lifestyles, but instead are being used to strengthen the nation’s defenses against crime.”

 

CACT’s Asset Seizure Track Record Continues To Grow

Since its inception in July 2019, the Criminal Assets Confiscation Taskforce has seized or restrained more than 1.2 billion Australian dollars’ worth of assets. These include not only houses and vehicles but also yachts, cryptocurrency holdings, and even valuable artwork.

The taskforce operates in cooperation with various domestic and international partners, enabling it to follow the financial trails of suspected criminals across borders. The growing number of seizures illustrates how seriously Australian authorities are taking financial crime, especially in the digital realm.