$123M crypto scam in Australia used car dealerships and cryptocurrencies to launder money

Australian authorities uncovered a $123-million crypto fraud scheme involving money laundering. The investigation involved multiple agencies and resulted in charges against four suspects. The scheme involved sophisticated methods to convert illicit funds into cryptocurrencies and evade detection.

Money laundering is the process of making illegal money appear legitimate to avoid scrutiny. Criminals use techniques like smurfing, commingling, and false invoices to place, layer, and integrate illicit funds. International standards set by the FATF help combat money laundering through customer verification and reporting suspicious activity.

An Australian scam ring used car dealerships and cryptocurrencies to launder illicit funds. The multi-step scheme involved a security company, classic car dealership, and sales promotion company. Authorities conducted raids, seizing crypto assets and freezing assets worth $21 million. Four suspects face charges, with penalties ranging from three years to life in prison.

Critics argue that crypto facilitates crime, with illicit crypto volume reaching $51 billion in 2024. Despite attracting criminals with anonymity and privacy features, blockchain’s transparency enables law enforcement to trace transactions and identify culprits. A FBI operation in 2023 involving ransomware payments demonstrated how blockchain records can lead to the freezing of assets and conviction of criminals.

Read more at CoinTelegraph: How a $123M crypto scam in Australia laundered millions through a ‘legit’ business