Australian Regulators Halts Two Crypto Exchanges, Police Continued Investigation

By Tabassum
Published March 9, 2019 Updated March 9, 2019
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Australian Regulators Halts Two Crypto Exchanges, Police Continued Investigation

By Tabassum
Published March 9, 2019 Updated March 9, 2019

AUSTRAC financial intelligence agency reportedly halted two Australian crypto trading platforms after scrutinizing their relation with an organized crime syndicate.

AUSTRAC Suspended Two Crypto Exchanges

According to the report, one man has been arrested and the two crypto exchange within the nation has been suspended – however, the name of the arrested man is still out of sight who was reportedly a 27-year old from Bulleen, Melbourne. Reports revealed that the key member of these platform has been allegedly charged for possessing almost 30 kilograms of drugs – including cocaine, ketamine, MDMA, and methamphetamine. Along with possession, he was also charged with the importing and trafficking of these drugs. The report notes that;

“Man used various darknet sites, bitcoin accounts and legitimate business for the sourcing, payment, and distribution of the illicit drugs”.

Following the investigation, AUSTRAC (Australia’s financial intelligence agency) suspended the registration of both the cryptocurrency exchanges with which the man was associated. The case has been undertaken by Federal Police in association with AUSTRAC – eventually, with the court order, the police restrained the cryptocurrency, property, and cash more than AU$ 2M.

Neither the name of two cryptocurrency exchanges nor the name of that arrested key member is revealed – consequent to the reports, these crypto exchanges wouldn’t be live until further notice from the court, reports revealed.

Concerning the above matter, AUSTRAC’s National Manager of Regulatory Operations, Dr. Nathan Newman says;

AUSTRAC’s role is to deter and disrupt criminal exploitation of Australia’s financial system and we take swift action where there is a reasonable risk of compromise. Our decision to suspend the registration of the two businesses means they can no longer lawfully operate.

Per the Australian media, AUSTRAC has recently been handed over with the task of monitoring local cryptocurrency exchanges. However, as far as the matter of suspended exchanges and the arrested man is concerned – it is still unclear how will it affect to the clients or customers of these cryptocurrency exchanges.

Stay tuned with Coingape to know the further hearing from the court on the same!


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]