The Victoria Police and Department of Public Prosecutions has secured convictions against two individuals involved in a money laundering syndicate operating in Melbourne. The investigation dubbed Project Taipan culminated in Australia’s first major crypto related money laundering convictions, with over AU$30 million laundered through digital assets such as USDC and Tether on the Ethereum blockchain.
Operation Taipan began in 2020 with a red flag raised by the Australian Transaction Reports and Analysis Centre (AUSTRAC) which identified a single Melbourne-based individual as the top recipient of regular ATM deposits across Australia. This anomaly pointed to a larger money laundering network, with investigations revealing an organised crime syndicate offering laundering services to criminal groups.
Initially, the funds were funnelled through bank accounts previously held by international students and moved offshore via remittance service providers (RSPs). The money would then return to Australia appearing “clean”. Over time, the syndicate pivoted to using cryptocurrency to further obscure the source and flow of funds. An undercover officer exposed the scheme after making inquiries seeking to convert $100,000 in funds into Bitcoin.
In 2021, Victoria Police executed search warrants across Melbourne, seizing cash, luxury vehicles and electronic devices. “After resolution, the task remained to extract and analyze the data from all seized devices to understand the full scope of the syndicate’s operations,” Sergeant David Crowe stated.
At that point in time, Victoria Police did not have the capability to trace the cryptocurrency assets — specifically USDC and Tether transacted on the Ethereum blockchain.
Police worked with Binance, a cryptocurrency exchange, to freeze a crypto account that had transacted more than AU$39 million in just five months. Blockchain intelligence company TRM Labs was engaged to conduct digital forensic analysis, mapping over AU$30 million in USDC and Tether flows and providing expert witness testimony in the prosecution’s case.
We recognize the importance of embracing new and emerging technologies to combat crime.
Sergeant David Crowe of Victoria Police.
In late 2024, two individuals pled guilty to proceeds of crime offences under the Criminal Code involving more than $30 million in cryptocurrency, marking Australia’s first successful conviction for crypto-based money laundering. One of the individuals also pled guilty to fraud offences. In sentencing remarks, Justice Cahill made only passing mention of the cryptocurrency related elements of the offending.
The case demonstrates the evolving nature of financial crime and the role of blockchain tracing software in dismantling sophisticated criminal networks. Contrary to popular perceptions, blockchain transactions are traceable and records can be used to reveal sophisticated illicit funds movements. In this case, cryptocurrency was just one element in a broader money laundering scheme involving several techniques.
The collaboration between Victoria Police, Binance and TRM Labs demonstrates the value of public–private partnerships like AUSTRAC’s Fintel Alliance, which bring together experts from across sectors to combat evolving money laundering and terrorism financing involving emerging technologies like cryptocurrencies.
TRM Labs has published a case study on the operation here.
