As per the press release of AFP, operation ‘Ironside’ was successful after three years of deep investigation of a currency exchange business. Changjiang Currency Exchange was leading its operation from multiple locations, such as Melbourne and Sydney.
The press release claims that currency exchange was using a sophisticated method to hide or temper the origin and destination of funds, which seems to be linked to some criminal activities, including money laundering (crypto), tax evasion, fraud, and drug trafficking.
AFP states that the exchange indulged in transnational criminal networks that used encrypted communication ecosystems and were helping to transfer illegal movement across borders.
Changjiang Currency Exchange is accused of laundering almost $229 Million over the time duration of three years. The exchange has 12 shop fronts in every mainland state and is now subject to regulatory action by AUSTRAC.
The operation started 14 months ago and regulators got victory on October 26 2023 after successful detention of seven accused. The amount that is claimed to be laundered by the currency exchange was processed in between 2020-2023.
AFP involved other regulatory bodies such as the Australian Taxation Office, the Australian Criminal Intelligence Commission, and AUSTRAC to get into depth of the issue and dismantle related entities.
The Australian Judicial System issued 20 search warrants for Australia, and during the raids, police detained 7 men. The charges imposed on the arrested entities include dealing with proceeds of crime, participating in criminal groups, and money laundering.
The search operations were conducted by highly trained 240 AFP members including 92 specialist members. Four of the arrested ones are citizens of China and and 3 of them are citizens of Australia.
AFP seized more than $50 Million in cash, including electronic devices, documents, jewelry, and luxury cars. The operation carried out was one of the most critical cases in Australia in terms of money laundering.
Is Cryptocurrency the new Frontier of ‘Hawala’?
The majority of the time, criminals use the mode of Hawala for sending money to commit crimes. However, over the past few years, criminal groups have shifted towards the concept due to the anonymity that Cryptocurrency provides.
The concept of using blockchain for financial purposes came into existence to enhance the efficiency of cross-border transactions. Blockchain based systems including cryptocurrency are expected to revolutionize cross border transactions and even finance.
Unfortunately, bad actors are exploiting cryptocurrencies to finance nefarious plans. Over the past few years, a significant surge in terror funding via crypto has been reported across countries.
In the past few weeks, several news reports have highlighted that Hamas, the militant organization that launched an unexpected attack on Israel, used crypto as a means to fund its activities. After this news, Israeli authorities informed the media that they had seized dozens of crypto wallets linked with the Hamas militant group.
Some blockchain analysis firms also revealed that before the recent attack on Israel, Hamas gathered millions of funds in cryptocurrencies.
Nevertheless, it has been widely recognized that crypto has the potential to revolutionize the global finance system and banking system.
Crypto has been used in various ways to benefit humanity ever since it was created. However, some bad actors are misusing crypto to finance their plans. Crypto was used to transfer funds to people affected by natural calamities in different countries. In adverse situations like natural calamities or other types of disasters, funds from across the world have poured in via crypto.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/27/australian-police-detained-7-men-in-crypto-money-laundering/