A 2018 tip off from Luxembourg authorities sparked an investigation into a Queensland man with a history of hacking and led to the restraint of assets totalling $4.5m in today’s market value.

The assets were suspected to be the proceeds of crime and included a waterfront home in Queensland, a black Mercedes Benz and almost 25 bitcoin.

Luxembourg law enforcement partners raised the alarm in September of 2018, after discovering a series of suspicious Bitcoin transactions. 

This prompted AUSTRAC analysts to begin looking into the activities of the 32-year-old man, previously convicted for hacking a gaming company in the United States in 2013-2014.

Over the next two years, AUSTRAC, worked closely with Luxembourg’s financial intelligence unit, providing a specialist financial intelligence officer and facilitating information exchanges between Luxembourg, the Australian Federal Police (AFP), the Australian Taxation Office and the Australian Criminal Intelligence Commission – all partners in the Criminal Assets Confiscation Taskforce (CACT).

AUSTRAC was also in touch with FinCEN, the United States’ financial intelligence unit, about the movement of suspected proceeds of crime. 

CACT joint efforts identified suspected links between the man and the theft of about 950 Bitcoin from a French cryptocurrency exchange in 2013.

In July 2023, AUSTRAC attended a search warrant with the AFP at the restrained property, in Beachmere, South-East Queensland. The restrained luxury car and 24.99 bitcoin were seized.  

In line with the intelligence and the evidence collected, CACT had good reason to suspect the assets were purchased with the proceeds of the theft committed in 2013. 

Under the Proceeds of Crime Act, CACT is able to restrain suspected instruments and proceeds of crime, using a civil standard of proof and without needing to lay criminal charges. 

Last month the District Court of Queensland ordered the assets to be forfeited.

AUSTRAC CEO Brendan Thomas said international exchanges were key to unravelling the man’s activities.

“Australian authorities were playing the long game and in the end, we got there – depriving this man of assets he thought were secure,” Mr Thomas said.

“Even without a criminal prosecution authorities were able to seize this man’s ill-gotten gains and make sure he can no longer enjoy the wealth he accumulated through fraud.

This is a great result and only made possible through international expertise and partnership.”