Yahoo Finance Two cryptocurrency exchanges shut down after Melbourne drug arrest
Two cryptocurrency exchanges have been suspended after a Melbourne man was arrested and charged with drug trafficking offences.
The Australian Federal Police on Thursday executed search warrants in four suburbs around Melbourne, to seize steroids, cash and cryptocurrency.
A 27-year-old Bulleen man was arrested as a result, and charged with importing, trafficking and possessing approximately 30kg of drugs like MDMA, cocaine, methamphetamine and ketamine.
The man is accused of being a significant member of a criminal syndicate, operating on dark net sites, running bitcoin accounts and legitimate businesses all to assist in trading illicit drugs.
After the arrest, financial crime authority AUSTRAC suspended two cryptocurrency exchange businesses that the arrested man was involved with.
“While cash is still ‘king’, digital currencies are fast becoming the preferred choice for organised criminal networks involved in money laundering, funding terrorism, and cybercrimes,” AFP detective superintendent Matt Craft said.
“Let this be a warning to digital currency exchange providers: if you fail to comply with your obligations, your actions will not go unnoticed.”
The County Court of Victoria also granted the AFP an order to freeze more than $2 million of property linked to the crime syndicate, including bank accounts, real estate, cars, a motorbike, cash and cryptocurrency.
The investigation into the syndicate, which has been importing drugs via international mail into Melbourne, is continuing. Two other men were charged in October 2017 for their involvement in the trafficking.
Both AUSTRAC and AFP sternly reminded Australians participating in the cryptocurrency trade their obligations to anti-money laundering and counter-terrorism laws.
“These [laws] were implemented to ensure digital currencies were being monitored in the same ways as cash exchanges and transfers,” said Craft.
“Any information about illicit activity by digital currency exchange providers that is provided to our squad – whether related to organised crime, terrorism, or technology-enabled crime – will be actively pursued in partnership with AUSTRAC.”
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