Key Takeaways
- Victoria Police are allowed to seize any property that either contains crypto or can help gain access to digital assets
- The report mentioned the latest authorization of “new powers” following the addition of “SECT 92A Seizure of digital asset under search warrant” to the Confiscation Act 1997.
Australia’s Victoria Police has made its first successful seizure of cryptocurrency assets, valued at roughly $142,679, marking a significant milestone under new legislation designed to address the challenges of digital asset-related crime.
As of August 1, 2023, updates to the Confiscation Act 1997 granted Victoria Police enhanced authority to confiscate digital assets linked to criminal activity. These updates introduced “Section 92A,” enabling officers to seize cryptocurrencies found in the course of investigations.
For the first time, officers were empowered to utilize recovery phrases—unique access words linked to digital wallets—to directly access and seize cryptocurrency assets. According to Victoria Police, this led to their ability to control six separate wallets during the investigation, all containing varying amounts of digital currency.
The recent powers now grant Victoria Police several specific methods for digital asset seizure under a search warrant, including direct access to devices like computers and hardware wallets, the ability to interfere with communication channels, and options to alter or transfer the digital funds in question.
The police department’s first application of these powers came after investigators discovered recovery phrases within seized documents related to drug trafficking. Accessing these phrases allowed them to confiscate funds stored in six wallets, each holding an undisclosed mix of crypto.
Victoria’s seizure comes at a time when law enforcement agencies globally are expanding their reach into digital asset investigations. In October, Binance worked alongside Delhi Police to dismantle a scam involving the entity “M/s Goldcoat Solar,” a scheme falsely claiming ties to India’s renewable energy sector.
This collaboration resulted in arrests and the seizure of over $100,000 in stablecoins. Similarly, Hong Kong police recently cracked down on a $46 million cryptocurrency romance scam, leading to the arrest of 27 individuals, some of whom were allegedly tied to organized crime groups.
In Australia, financial oversight of digital assets continues to evolve. The Australian Securities and Investments Commission (ASIC) announced in September that it plans to require cryptocurrency exchanges to obtain financial services licenses to operate within the country.
According to ASIC Commissioner Alan Kirkland, this regulation is essential, as the agency views major assets like Bitcoin and Ether as falling within the Corporations Act.
Earlier in October, the Australian Federal Police seized US$6.36 million in crypto as part of an operation targeting the assets of the alleged mastermind behind Ghost, an encrypted communication platform used by organized crime groups.
