Criminal Lawyers Mount Druitt
Cybercrimeon the rise: Sydney woman arrested for alleged Bitcoin money laundering scheme
Cybercrimes involving the use of cryptocurrencies are on therise in Australia. On May 14, in their latest exorts against cybercrime, NSWPolice arrested a 52-year-old woman in a Burwood shopping centre for allegedlyoperating an unlawful digital currency provider.
As reported by NSWPolice, oycers seized $60,000 in cash and3.8 Bitcoin (worth over $55,000) as well as con{scating the woman’s mobilephone. A further $18,200 worth of Bitcoin and a number of cryptocurrencywallets and electronic devices were later seized from a Hurstville apartment.The woman was charged with 3 counts of knowingly dealing with proceeds of crimeunder Section 193(B) of the Crimes Act 1900 (NSW) and breaching requirements inoperating a digital currency exchange service under Section 76A of theAnti-Money Laundering and Counter Terrorism Act 2006. It is alleged by policethat the woman is a member of a criminal syndicate who uses Bitcoin to laundermoney and has transacted over $5 million worth of Bitcoin since 2017.
Charges the First of their Kind in Australia
Detective Superintendent Matt Craft said that these chargeslaid against a non-compliant cryptocurrency exchange were the {rst of theirkind to be laid in Australia, saying that, “While cash is still ‘king’, digitalcurrencies are fast becoming the preferred choice for organised criminalnetworks involved in money laundering, funding terrorism,
and cybercrimes”. NSW Police say that more arrests areexpected in the months ahead, illustrating the growth of cybercrime and cryptocurrency-relatedoxences in Australia.
This arrest signals the growing seriousness with which lawenforcement agencies are cracking down on the threats posed by criminal groupsusing Bitcoin and other cryptocurrencies in their illegal activities.
Why use Bitcoin in Cybercrimes?
Bitcoin is a type of cryptocurrency. Unlike traditionalcurrencies (such as the Australian dollar), cryptocurrencies are not controlledby any government, bank, or other organisation. There are over 2000cryptocurrencies in existence,such as Ethereum, Monero and Ripple. However,Bitcoin remains the most popular and most widely known.
Cryptocurrencies are attractive to people involved inillegal activity, due to their decentralised nature. Many cryptocurrencyexchanges around the world do not require real names, so large amounts of moneycan be traded in the form of cryptocurrency and escape law enforcementdetection. Because of this, cryptocurrency is a popular currency choice on thedark web, where it can be used to trade in unlawful items such as illegal{rearms, prohibited drugs, and child pornography. Indeed, it has been reportedthat, despite the regulatory exorts of governments,
Bitcoin transactions on the dark web have increased by 340%since 2017.
Cryptocurrencies are also used to engage in other illegalactivity such as fraud, tax avoidance, and money laundering through unregulatedexchanges. The use of cryptocurrency in organised crime is therefore aconsiderable concern for governments and law enforcement agencies around the world.Indeed, itwas estimated that in 2019 over $2.8 billion was laundered usingunregulated cryptocurrency exchanges.
Australian Regulation of Cryptocurrency
In response to the risks posed by cryptocurrencies,Australia has established a single regulatory body to regulate cryptocurrencyexchanges – the Australian Transactions and Reports Analysis Centre (AUSTRAC).In April 2018, amendments were made to the Anti-Money Laundering andCounter-Terrorism Financing Act (2006)
in an exort to prevent money laundering and othercryptocurrency-related crimes. In order to meet their legal obligations,cryptocurrency exchanges are required to:
1. Adopt andmaintain an Anti-Money Laundering and Counter-Terrorism Financing program toidentify, mitigate and manage money laundering and terrorism {nancing risks;
2. Registertheir cryptocurrency exchange with AUSTRAC;
3. Identifyand verify users;
4. Reportsuspicious behaviourand all transactions worth A$10,000 and over; and
5. Maintainrecords of transactions for a minimum of 7 years.
If these requirements are not adhered to,serious penaltiesmay apply, up to 7 years in prison and 2,000 penalty units ($220,000).
Cryptocurrency Cybercrime on the Rise
Despite Australia’s regulatory exorts, cryptocurrencies suchas Bitcoin arequickly becoming the preferred currency for those involved incybercrime. Many ordinary people are axected by cybercrime every day, throughmethods such as email fraud, online identity theft, and shopping scams.
