South Australian police have filed 800 charges and made 55 arrests in connection with a massive cryptocurrency-related crime ring. The most recent action is the third phase of Operation Ironside, a combined Australian Federal Police and FBI inquiry.
According to ABC News, officials have confiscated cryptocurrency assets worth around AU$58 million ($37.9 million) related to the investigation.
Millions of crypto confiscated
A software called AN0M was developed by the FBI to covertly decipher criminal conversations. The police used the encrypted messaging app to locate illegal conversations about cryptocurrency transactions and drug smuggling.
After the High Court authorised the use of AN0M communications as evidence, the new phase was initiated. The action is a “significant blow to organised crime across South Australia,” according to Deputy Police Commissioner Linda Williams.
She described the arrests as “unprecedented” and mentioned that multiple raids involving 300 police officers were conducted. “I think you can anticipate more arrests, but probably not at the [tempo] that you have seen today,” she added.
What prompted AN0M?
In order to attract criminals looking for secure communication for illegal operations, the Federal Bureau of Investigation (FBI) placed AN0M on modified phones that don’t have cameras, GPS, or browsers. It was purportedly concealed in the calculator on each phone.
The Australian Federal Police “developed a world-first capability to unscramble encrypted communications” in collaboration with the FBI. According to the ABC investigation, they collaborated to covertly record every data transmitted between devices utilising the platform.
Self-expiring texts, photo taking and sending, voice editing, and file storage were among the capabilities of the AN0M app.
Operation Ironside in Australia soon resulted in the arrest of hundreds of offenders. Nearly 1,000 people with firearms and cryptocurrency-related money laundering have been detained worldwide, according to the Australian Federal Police.
“This is a really strong deterrent message to organised criminals operating in South Australia,” said Deputy Commissioner Williams. “We have been able to leverage the intelligence from the encrypted AN0M app to bring this to a successful resolution.”
Other developments in Australia
In other developments, while it investigates the failure of the company’s cryptocurrency exchange, the Australian corporate regulator has barred Blockchain Global director Ryan Xu from departing the nation.
The Federal Court granted temporary travel restraint orders against Xu, also known as Zijing Xu, in October, according to the Australian Securities and Investments Commission (ASIC).
On the other hand, the exploitation of cryptocurrency for illegal purposes is “becoming increasingly sophisticated,” according to a recent warning from Europol.
The law enforcement agency stated in a study published last week that the cryptocurrency industry and scam victims in general are at risk due to the increasing complexity of criminal techniques.
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