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Victoria Police Seize $142,679 in Crypto Under New Legal Framework
- Victoria Police successfully implemented changes to the Confiscation Act in 23-24, according to a new report.
- The report outlines one case in particular, where VicPol gained control of nearly $150k in digital assets.
- The crypto became available as laws allow Victorian Police to search data storage devices for recovery phrases.
- These phrases were then used to access six different crypto wallets related to the search warrant.
Victoria Police have been hard at work over the past 12 months, raking in nearly $150k worth of crypto from the wallet of criminals. This is a new ability for the Australian law enforcement agency, with legislation now allowing VicPol to seize digital assets with a search warrant.
Regulatory framework shifts for crypto have become commonplace for governments around the world following FTX’s collapse in 2022, and Australia is no different. The nation is also preparing to implement new guidelines for local crypto exchanges to acquire their financial services license.
Related: Binance APAC Exec Urges Cyber Security Awareness, Reveals Four Simple Steps for Investors
$150K Seized Thanks to Successful Bust on Large-Scale Drug Ring
According to the Victoria Police 2023-24 report, $142,679.10 worth of various digital currencies were seized throughout the financial year. This was made possible due to August 2023 changes to the Confiscation Act, originally drafted in 1997.
The entire seizure came through a single search warrant, which was part of a broader investigation into a Vic-based Melbourne drug trafficking ring.
The report reads:
Police seized multiple documents during the operation, that were related to cryptocurrency ‘recovery phrases’…Victoria Police detectives were able to access six wallets and seize $142,679.10 worth of various cryptocurrencies. This was the first successful cryptocurrency seizure since the changes to the legislation.
Victoria Police VicPol and AFP Ramping Up Measure to Combat Crypto Crime
In short, VicPol’s new powers allow them to search computers and other devices to identify seed phrases. These phrases can then be used to “crack” the crypto wallets of criminals, and law enforcement now has the right to become the official owner of the seized digital assets.
The police officer may…access a computer or data storage device…interfere with a computer or data storage device…alter or transfer the asset…or perform any other transaction…that may be required to gain exclusive control of the asset.
CONFISCATION ACT 1997 – SECT 92A
VicPol isn’t the only Aussie law agency working overtime to prevent crypto-related crime. The Federal Police unveiled Operation Kraken in 2023, which recently “restrained” $9.3m worth of digital assets related to the illegal encrypted comms platform, Ghost.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
