NSW Police Pull Off One of Australia’s Largest Bitcoin Busts in History

New South Wales Police have seized 52.3 Bitcoin valued at approximately AU$5.7 million during a raid in Ingleburn in Sydney’s south-west, with authorities describing it as one of the largest cryptocurrency seizures in Australia. The operation was carried out on 4 May as part of an investigation into alleged darknet marketplace activity.

The seizure formed part of Strike Force Andalusia, an investigation launched in September 2024 after the NSW Police Cybercrime Squad identified a cryptocurrency wallet believed to contain proceeds linked to darknet transactions. Earlier inquiries included a raid at a Surfside property, where detectives seized electronic devices, around 7.2 grams of cocaine and cryptocurrency worth roughly AU$47,000.

Related: Coinbase Targets $1T Retirement Market With Crypto Offering for Australian SMSFs

Alleged Links to Darknet Marketplaces 

Police alleged the Bitcoin holdings were connected to the online sale of prohibited drugs and potentially weapons through darknet marketplaces. Investigators said forensic analysis of seized devices and blockchain tracing helped connect on-chain transactions with real-world identities.

A 39-year-old Ingleburn man was charged with allegedly dealing with proceeds of crime exceeding AU$5 million, supplying prohibited drugs and failing to comply with a digital evidence access order after police said he refused to provide access to devices. A 41-year-old man was also charged over an alleged cryptocurrency transfer exceeding AU$100,000. Both matters remain before the courts. 

Detective Superintendent Matt Craft said the case demonstrated that criminal activity conducted through darknet platforms could still be traced by law enforcement agencies.

Related: JPMorgan: Investors Are Choosing Bitcoin Over Gold in the Debasement Trade