South Australia Nabs 55 in $38M Crypto Fraud Sting After Court Ruling
South Australian police arrest 55 suspects in a $38M crypto fraud case after a key court ruling cleared the way for nationwide asset seizure
Quick overview
- South Australian Police arrested 55 individuals as part of Operation Ironside, a collaboration with the AFP and FBI targeting a major crime network using the AN0M encrypted messaging app.
- A recent High Court ruling allows intercepted AN0M messages to be used as evidence, leading to over 800 new charges related to drug trafficking and firearms offenses.
- The operation has seized A$58 million in cryptocurrency linked to criminal activities, highlighting the ongoing challenges of crypto crime and public trust.
- Despite government efforts to regulate crypto, a survey indicates that 60% of Australians lack trust in digital assets, raising concerns about fraud and privacy.
South Australian Police have arrested 55 people in the latest push of Operation Ironside , a joint effort between the Australian Federal Police (AFP) and the FBI. The operation is nipping at the edges of a massive, sprawling crime network that was using that obscure encrypted messaging app AN0M to do its dirty work.
The arrests come after a High Court ruling ruled that messages from AN0M can be used as evidence in court , a decision that opens the door to hundreds of new prosecutions. Police have confirmed over 800 new charges – drug trafficking, firearms offenses and some really serious conspiracy counts – and so far they’ve taken a cool A$58 million (US$37.9 million) in crypto cash that was linked to digital wallets and exchange accounts.
The High Court Ruling Lets Police Use Encrypted Evidence
The High Court threw their hat into the ring back in early October with a ruling that said intercepted AN0M messages were fair game as evidence – this after defence lawyers tried to argue that police had overstepped their surveillance powers. In the end, the judges ruled in favour of the police – which is a big deal because this opens up all of the intelligence the police had been gathering over the years under Operation Ironside.
Deputy Commissioner Linda Williams said the court’s decision had “sorted a lot out” for them – paving the way for some of these cases to be brought to closure. She reckons access to AN0M data was crucial in figuring out who these major players were in the crime network.
Some of the Other Details From the Investigation:
- There were around 1600 AN0M devices active in Australia at one point
- Over 19 million messages were intercepted between 2018 and 2021
- The FBI had the encryption keys for AN0M, which meant they could share data live with the AFP
Where Does This Leave Crypto Crime and Public Trust?
The AN0M app was basically just a secure platform in name only – but in reality, it was just a way for these crooks to keep in touch with each other. They thought the phones they used to get to it were unhackable – but of course, law enforcement had all the keys to the kingdom. The phones were basically just modified handsets, stripped bare of cameras, gPS and anything else that might have given them away.
Europol’s saying that crypto crime is getting more sophisticated every day – pushing the limits of what law enforcement can do to catch the crooks.
Despite the government clamping down on crypto with the Albanese regime, public confidence in it is still pretty low. A recent survey by Swyftx found that 60% of Australians don’t trust digital assets – and one third reckon its because they’re worried about fraud.
As Operation Ironside enters its third phase, it highlights the real tension between digital privacy and public safety – a fight that’s got big implications for the next chapter in global crypto law enforcement.
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