Cybercrime detectives in Australia seized 52 Bitcoin valued at 5.7 million Australian dollars ($4.1 million) in what they said is one of Australia’s largest crackdowns on an illegal darknet marketplace using cryptocurrency.
Strike Force Andalusia, a division of the State Crime Command’s Cyber Crime Squad, said they seized $4.1 million worth of cryptocurrency and arrested two suspects related to a darknet marketplace operating from Ingleburn in Sydney following a 15-month investigation, the New South Wales Police Force said Wednesday.
Police said two men, aged 41 and 39, allegedly had access to the cryptocurrency wallet. The 41-year-old is scheduled to appear in Campbelltown Local Court on May 13, while the 39-year-old is due in Batemans Bay Local Court on June 15.
Detectives executed a search warrant at a home in Ingleburn on May 4, where they seized electronic devices and allegedly uncovered 52.3 Bitcoin that police will allege are proceeds of illegal darknet activity.
The operation marks one of the largest reported darknet-related cryptocurrency seizures in Australia. It comes five years after Victoria Police seized cryptocurrency worth $6.2 million from an illegal darknet operation in August 2021, reported local news outlet 9News.
“This is one of the biggest cryptocurrency seizures in the nation’s history and a clear reminder that criminal activity on the darknet is not anonymous,” said Detective Superintendent Matt Craft, adding that dark net marketplaces remain “a key enabler of serious criminal activity.”
Cointelegraph approached NSW Police to ask whether investigators had obtained access to seed phrases or otherwise recovered control of the seized Bitcoin.
Cybercrime squad detectives seize crypto wallets belonging to alleged darknet marketplace operators. Source: NSW Police
Australia steps up AML supervision for crypto platforms
The seizure comes as Australia’s financial intelligence and Anti-Money Laundering regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has stepped up the supervision of the country’s digital asset sector.
On Friday, AUSTRAC said it launched two campaigns focused on virtual asset service providers (VASPs) offering over-the-counter crypto-to-cash services and local exchanges operating in the country.
As part of the reform, Australia also adopted the internationally used VASP term, replacing the previous narrower definition of digital currency exchanges (DCE).
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The campaigns seek to assess and improve AML risk management within Australia’s virtual asset sector. It involves AUSTRAC engaging with 36 crypto businesses and 27 local crypto exchanges to revise and improve business models and the management of AML risks.
“AUSTRAC is checking how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force,” said AUSTRAC’s CEO, Brendan Thomas.
Australia has also passed the Corporations Amendment (Digital Assets Framework) Act 2026, which received Royal Assent on April 8 and will bring digital asset platforms and tokenized custody platforms into the financial services licensing regime from April 9, 2027.
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