Australian feds seize mansion, Bitcoin allegedly linked to crypto exchange hack

Australian authorities seized assets worth approximately $2.88 million from a Queensland man, Shane Stephen Duffy, suspected of using proceeds from crime. The seizure, conducted by the Australian Federal Police (AFP)-led Criminal Assets Confiscation Taskforce (CACT), included nearly 25 Bitcoin (BTC), a waterfront mansion, and a Mercedes-Benz.

The AFP initiated its investigation in September 2018, following information shared by Luxembourg law enforcement regarding suspicious Bitcoin transactions linked to Duffy. These transactions were allegedly connected to his prior conviction for hacking a US gaming company. While no criminal charges were filed directly related to the Bitcoin theft, the AFP successfully obtained a court forfeiture order in April. The order permitted the confiscation of the assets based on the inability to link them to legitimate earnings.

Duffy’s criminal history includes a 2016 guilty plea to fraud and computer hacking for selling the personal data of League of Legends players. Although not directly implicated in the 2011 hack of Riot Games, which compromised over 5 million user accounts, Duffy admitted to acquiring and profiting from the illegally obtained data. He also admitted to hacking the X account of Riot Games president Marc Merrill to promote his data-selling business.

The AFP highlighted its unique powers under the Proceeds of Crime Act, enabling the restraint and forfeiture of assets suspected as proceeds of crime, including those obtained through cybercrime. AFP Commander Jason Kennedy emphasized the agency’s commitment to targeting criminal proceeds and reinvesting them into community initiatives. The proceeds from the sale of Duffy’s seized assets will be allocated to a special fund supporting crime prevention and law enforcement.

The CACT’s ongoing efforts have resulted in the restraint of over $1.2 billion in assets since July 2019. This highlights the significant scale of the taskforce’s operations in targeting and confiscating assets believed to be linked to criminal activities, encompassing various asset classes including real estate, vehicles, cryptocurrency, and fine art. The case underscores the growing focus of law enforcement agencies worldwide on tracing and seizing cryptocurrency linked to illicit activities.