Nearly 25 Bitcoin, a luxury waterfront mansion, and a Mercedes-Benz vehicle were seized by the Australian Federal Police, as they were suspected to be linked to a cryptocurrency exchange hack that occurred in 2013.
Bitcoin, a waterfront mansion, and a Mercedes-Benz car were forfeited by a Queensland man after being alleged by the Australian Federal Police to be connected to the proceeds of criminal activity.
A statement released on May 18 confirmed that nearly 25 Bitcoin, along with a mansion and a car valued collectively at 4.5 million Australian dollars ($2.88 million), were seized by the Criminal Assets Confiscation Taskforce (CACT), led by the Australian Federal Police.
An investigation was initiated by the Australian Federal Police in September 2018 following the receipt of information from Luxembourg authorities regarding suspicious Bitcoin transactions, which were alleged to be linked to a Queensland man previously convicted of hacking a U.S. gaming firm.
The man was also alleged by the Australian Federal Police to be connected to the theft of 950 Bitcoin, which had been stolen from a French cryptocurrency exchange in 2013.
Although no criminal charges were filed regarding the Bitcoin theft, a court forfeiture order for the property, vehicle, and Bitcoin was secured by the AFP in April, based on the assertion that the assets could not be associated with any “identifiable legitimate income.”
AFP Exercises Special Authority to Confiscate Assets
It was reported by local media outlet 7NEWS that the individual linked to the seized assets is Shane Stephen Duffy, who had pleaded guilty in 2016 to charges of fraud and computer hacking for distributing the personal information of League of Legends users.
A 2011 cyberattack targeting Riot Games, the developer of League of Legends, resulted in the unauthorized access of data belonging to over 5 million users; Duffy was not alleged to have participated in the breach, as prosecutors stated the data had been obtained by him online and sold for financial gain.
The X account of Riot Games president Marc Merrill was allegedly hacked by Duffy to promote his data-selling operation, which was said to offer access to other League of Legends player accounts.
In a statement, it was stated by AFP Commander Jason Kennedy that the agency is granted “unique powers” through the Proceeds of Crime Act to “restrain and forfeit” assets suspected to be derived from criminal activities, including those involving cybercrime.
It was noted by him that proceeds gained from unlawful activities are frequently utilized to finance additional crimes, which is why efforts are made by the AFP, in collaboration with CACT partners, to target such assets and ensure their reinvestment into the community.
According to the AFP, the funds generated from the sale of the assets will be directed to a dedicated fund that finances crime prevention initiatives and law enforcement efforts.
Since July 2019, more than $1.2 billion worth of assets—including properties, vehicles, yachts, cryptocurrency, and fine art—have been restrained through the authority exercised by the CACT.
