An Australian man from Queensland has lost nearly 25 Bitcoin, a waterfront mansion and a Mercedes‑Benz after federal police said the assets may be tied to crime.
He faces no new criminal charges over the Bitcoin, but a court order cleared the way for civil forfeiture.
It wasn’t a direct hacking charge from the 2011 Riot Games breach. Rather, he bought a copy of personal data online and sold it on. Police also believe he’s tied to 950 Bitcoin stolen in 2013 from a French crypto exchange.
Based on reports, the AFP tapped special powers under the Proceeds of Crime Act. They can “restrain and forfeit” assets if they can’t be shown to come from honest work. That means no jail time is needed before the agency moves in.
Critics worry this lets authorities take property without a full criminal trial. Supporters say it stops funds being used for more crime and puts money back into community projects.
Since July 2019, the taskforce has frozen over $1.2 billion in assets. That list includes homes, yachts, fine art and other crypto holdings. The idea is to turn criminal gains into community benefit.
Investigators lean on public blockchain data to trace coins. But anyone holding Bitcoin mixed with “tainted” funds may face a fight to prove their innocence.
Tracking each transaction or UTXO can be a heavy lift for everyday users. Some fear this trend could sweep up bystanders who unknowingly hold coins once linked to illicit deals.
Local reports show mixed feelings. Some residents feel safer knowing high‑value criminal gains can’t slip through the cracks. Others worry about the rights of innocents and the burden of proof.
They ask whether civil courts can match the strict standards of criminal trials. As crypto grows more popular, cases like this will test how far authorities can go to reclaim suspect wealth.
Featured image from Gemini Imagen, chart from TradingView
