Today in crypto, a multi-agency investigation in Australia traced illicit funds to a suspected $123 million crypto laundering operation hiding behind a security company, Coinbase CEO Brian Armstrong said the crypto exchange has been working on unfreezing user accounts as a priority, and Michael Saylor teased another Bitcoin purchase by Strategy for the ninth week running.
Australia Unmasks $123 Million Crypto Laundering Ring Behind Security Firm
Australian authorities have charged four individuals following an 18-month investigation into a $190 million Australian dollar ($123 million) crypto laundering operation allegedly run through a cash-in-transit security company.
The Australian Federal Police said they had frozen about $13.6 million worth of suspected criminal assets across the states of Queensland and New South Wales.
The Queensland Joint Organized Crime Taskforce (QJOCT), comprising 70 officers from federal and state agencies, began the investigation in December 2023. It reportedly uncovered an operation that used an armored vehicle unit of a security business as a front to launder criminal proceeds into cryptocurrency.
Transaction trails from one suspect, who allegedly laundered $9.5 million over 15 months, led investigators to uncover a complex laundering scheme masked as legitimate business activity.
The security company is accused of blending clean business earnings with illicit cash deposited by suspected criminals, then funneling the funds through a sales promotion company, a classic car dealership and cryptocurrency exchanges.
The laundered funds were then allegedly distributed to beneficiaries either in cryptocurrency or via those front businesses.
Coinbase Says It’s Tackling Frozen Accounts in “Major Issue”
Coinbase CEO Brian Armstrong said the crypto exchange has reduced unnecessary user account freezing by 82%, after identifying it as a “major issue.”
In a June 6 X post, Armstrong acknowledged that account freezing has been a problem “for longer than is acceptable,” and that it has become a top priority for his firm to improve.
“The issue has been reduced by 82% so far, with more improvements coming. We’ll keep you updated as further improvements roll out,” Armstrong said, asking all customers with frozen accounts to contact Coinbase Support.
Coinbase users have expressed frustration over account restrictions for years, reporting sudden freezes lasting several months or longer, prompting some to abandon the platform.
Customer confidence in Coinbase was also recently shaken by a mass data breach that exposed the details of more than 70,000 customer accounts.
Michael Saylor Teases Fresh Bitcoin Buy After $1 Billion Stock Offering
Strategy co-founder and executive chairman Michael Saylor posted a chart of the company’s Bitcoin holdings on June 8, signaling a possible upcoming acquisition.
On June 8, Saylor posted “Send more Orange” on X. Saylor’s cryptic posts are often followed by announcements of new Bitcoin (BTC) purchases. If Strategy follows up the post with another BTC buy, it will mark the ninth week of consecutive Bitcoin purchases from the company.
The post comes shortly after the company purchased an additional 705 BTC between May 26 and June 1 for around $75 million at an average price of $106,495 per coin, bringing the company’s total Bitcoin holdings to 580,955 BTC, currently valued at approximately $61.4 billion.
Data from SaylorTracker shows that the company is up approximately 50% on its investment, amounting to around $20.6 billion in unrealized profit.
Saylor’s X post follows Strategy’s announcement of a $1 billion stock offering, quadrupling its previously announced $250 million raise. The company said it will use the proceeds to fund additional Bitcoin purchases and general corporate expenses