Australian authorities uncovered a $123M laundering ring using fake security firms to convert drug proceeds into crypto. The operation exploited KYC loopholes at offshore exchanges, mixing funds through privacy coins before converting to fiat. This marks APAC’s largest crypto-related financial crime case in 2025.
The bust involved coordinated efforts from AUSTRAC and blockchain analytics firms tracking XMR and ZEC flows. Officials highlighted sophisticated use of algorithmic trading bots to disguise transaction patterns. The case has prompted calls for stricter VASP licensing and travel rule enforcement.
Despite the headline figure, analysts note the amount represents <0.1% of Australia's annual crypto volume, supporting industry claims of blockchain's traceability advantages. Exchanges involved face potential revocation of operating licenses as regulators push real-time transaction monitoring.
