Victoria Police in Australia have made their first successful crypto seizure, worth $142,679, following recent legal changes that grant law enforcement the authority to seize digital assets via search warrants.
New Legal Framework for Crypto Seizures
The Victoria Police highlighted this milestone in its 2023–24 annual report, released on Oct. 31, noting that recent amendments to the Confiscation Act 1997 had granted them new powers to confiscate cryptocurrencies.
Specifically, the addition of SECT 92A to the Confiscation Act—introduced on Aug. 1, 2023—enables law enforcement officers in Victoria to seize cryptocurrencies from individuals under investigation, provided they have a valid search warrant. This new framework empowers police to take control of digital assets linked to criminal activity, including drug trafficking and other illicit operations.
Crypto Seizure During Drug Bust
The seizure occurred during a significant drug trafficking investigation in which Victoria Police’s Cryptocurrency Operations team discovered crypto recovery phrases (also known as seed phrases) among seized documents. These seed phrases, a series of secret words linked to specific crypto wallets, can be used to recover and access the associated digital assets.
After obtaining a search warrant, the police were able to access six cryptocurrency wallets, resulting in the seizure of $142,679.10 worth of various digital assets. This seizure marked the first time Victoria Police used its new powers under the updated Confiscation Act.
Expanded Powers for Seizing Digital Assets
The new legal framework provides police with several methods to seize crypto assets during investigations:
- Accessing Storage Devices – Police can seize or access computers and other devices where cryptocurrencies may be stored.
- Interfering with Communication Devices – Authorities can disrupt devices used to store or manage crypto wallets.
- Altering or Transferring Assets – Police are authorized to alter or transfer digital assets to gain exclusive control over them.
- Performing Transactions – Officers may conduct transactions to control assets linked to suspected criminal activity.
Additionally, police have the authority to seize hardware wallets or any physical property that may store or provide access to digital assets.
Broader Regulatory Context
The new powers come as Australia moves toward a more robust regulatory framework for cryptocurrency. In September 2023, local reports revealed that Australian regulators, including the Australian Securities and Investments Commission (ASIC), were preparing new guidelines for cryptocurrency exchanges. These guidelines would require exchanges to obtain financial services licenses, as regulators consider that existing financial laws like the Corporations Act already cover major crypto assets such as Bitcoin and Ether.
This latest development in Victoria underscores the growing trend of governments and law enforcement agencies adopting stricter controls and tools to track and seize cryptocurrencies, particularly in the context of criminal investigations. With cryptocurrency becoming an increasingly common tool in illicit activities, authorities are equipping themselves with new capabilities to ensure that digital assets can be effectively confiscated when necessary.