A story of failure: how to launder $123 million using crypto and end up in prison

A large-scale scheme involving the laundering of illegal proceeds using cryptocurrencies has been uncovered in Australia. GetBlock AML Research explains how criminals managed to legalize more than $123 million.

The investigation, which lasted more than 18 months, involved the Australian Federal Police, the Queensland Police, the Australian Criminal Intelligence Commission, and many other agencies. The investigation began in December 2023 when suspicious transactions were discovered.

A joint task force called the Queensland Joint Organized Crime Taskforce (QJOCTF) tracked the movement of money belonging to one of the members of the criminal network. It discovered that it was part of a large and well-organized money laundering scheme involving shell companies and cryptocurrencies. According to authorities, a total of about $123 million passed through this scheme. In the end, all of this money was converted into cryptocurrency.

Before we look at how it all worked, it is worth explaining what money laundering is.

Money laundering is a process of disguising criminal proceeds as legal income. This is done so that criminals can use the funds they have obtained without attracting the authorities’ attention.

This usually happens in three stages. The first stage is “placing” illegal money in the financial system. Various methods are used for this. For example, “smurfing”: large sums are broken down into smaller amounts and deposited into accounts to avoid detection. Another method is “mixing,” when dirty money is mixed with legal income, most often through cash businesses. They also use fictitious accounts and inflated invoices to create the appearance of legitimate transactions.

The second stage is “layering.” Money is transferred between accounts and countries or converted into other forms of assets. All this is necessary to completely cover the tracks.

The third stage is “integration.” Once the money looks clean, it is returned to its owners. It is used to buy real estate, luxury goods, or converted back into cryptocurrency.

To combat this, many countries adhere to the FATF international standards. These include customer verification, mandatory reporting of suspicious transactions, and strict rules for crypto exchanges.

According to the United Nations Office on Drugs and Crime, up to $5,54 trillion was laundered worldwide in 2024. That is about 5% of the entire global economy.

How an Australian gang used car dealerships and crypto to launder money

Although the scheme ultimately failed, Australian scammers built a multi-layered system to circumvent anti-money laundering laws.

The main link was a cash-in-transit security company. It used couriers to collect money from secret locations in different cities and transport it to Queensland.

The company then had to deliver the money to its front companies. Armored cars were used for this purpose so that the illegal money would be mixed with legal money without arousing suspicion.

The money then went to a classic car dealership. It had multiple bank accounts. This type of business is ideal for money laundering, as car dealerships often work with large amounts of cash and can easily hide illegal income among real sales.

The dealership then mixed the dirty money with legal income when depositing it into accounts. The money was then transferred between different accounts to cover its tracks. After that, part of the funds went to an advertising company, which was also part of the network.

The advertising company carried out the final stage. It converted part of the money into cryptocurrency to make tracking even more difficult. Ultimately, the funds ended up with the final recipients — in cryptocurrency or through third-party firms.

Consequences of the Australian investigation

Once the scheme became clear, authorities quickly began searches and arrests. In June 2025, QJOCTF conducted searches of 14 homes and businesses in Queensland. Cryptocurrency worth $170 000, $30 000 in cash, as well as documents and equipment were seized.

The police froze 17 properties, cars, and funds in various accounts. The total value of the seized property was approximately $21 million. Four people were charged: the director and manager of a security company, a man associated with an advertising firm, and a car dealership owner.

All of them are accused of laundering criminal proceeds and forging documents. The maximum punishment ranges from three years to life imprisonment. The investigation is still ongoing. Authorities say that charges may be brought against other people when they find new connections in this network.