In a dramatic asset seizure with roots stretching back more than a decade, the Australian Federal Police (AFP) have confiscated a luxury waterfront mansion, nearly 25 Bitcoin, and a Mercedes-Benz—assets believed to be linked to one of the earliest large-scale crypto hacks from exchanges.
On May 18, 2025, the AFP’s Criminal Assets Confiscation Taskforce (CACT) issued a public statement confirming the seizure. The operation targeted a Queensland man whose alleged connection to a 2013 crypto exchange breach was flagged by international law enforcement. Although no new criminal charges were filed, the AFP successfully obtained a court order to forfeit the assets, valued at a total of 4.5 million Australian dollars ($2.88 million USD).
Cross-Border Crypto Probe Sparks Australian Investigation
The case began in September 2018, when law enforcement officials in Luxembourg tipped off the AFP about a series of suspicious Bitcoin transactions. These transactions, traced through blockchain analysis, appeared to be tied to a man already on the AFP’s radar—a Queensland resident with a prior conviction for cybercrime.
The AFP’s investigation eventually linked the man to a 2013 hack of a French cryptocurrency exchange, which resulted in the theft of 950 Bitcoins. At today’s prices, that amount of Bitcoin would be worth close to $97.8 million USD.
While the AFP initially withheld the man’s identity, local media outlet 7NEWS later identified him as Shane Stephen Duffy, a figure known in cybersecurity circles.
In 2016, Duffy pleaded guilty to charges of fraud and computer hacking. His offenses included selling stolen personal data from the popular online game League of Legends. Although he was not involved in the original 2011 hack of Riot Games, the company behind the game, prosecutors stated that Duffy acquired the leaked data online and turned a profit by reselling it.
Duffy was also accused of hacking into the X (formerly Twitter) account of Riot Games president Marc Merrill, using the account to promote his illegal data-selling business. His services reportedly included unauthorized access to League of Legends accounts.
No Criminal Charges, But Major Financial Penalty
Despite being linked to the 2013 crypto hack, Duffy has not been criminally charged for the Bitcoin theft itself. Instead, the AFP focused on asset forfeiture, arguing that the property and digital assets could not be tied to “identifiable legitimate earnings.”
This legal strategy falls under the Proceeds of Crime Act, a powerful piece of legislation that enables the AFP to seize and forfeit assets even in the absence of new criminal convictions.
AFP Commander Jason Kennedy emphasized the importance of this approach in a statement:
“The profits derived from criminal activities are also often used to fund further criminal acts. That’s why the AFP works closely with our partners in the CACT to target the proceeds of crime and ensure they are reinvested in the community.”
What Was Seized?
According to the AFP, the total value of the confiscated assets was 4.5 million AUD, or $2.88 million USD, including:
- A waterfront mansion in Queensland
- A luxury Mercedes-Benz vehicle
- Approximately 25 Bitcoin (valued at ~$2.57 million USD at current prices)
The court-approved forfeiture order was issued in April 2025, following years of investigation and legal proceedings.
Reinvesting Crime Proceeds Into the Community
One of the more compelling aspects of the seizure is how the recovered assets will be used. The AFP announced that the funds will be directed into a special purpose fund, which supports crime prevention initiatives and law enforcement programs across Australia.
This follows a broader trend in Australian law enforcement. Since July 2019, the CACT has used its statutory powers to restrain over $1.2 billion AUD worth of illicit assets. These include everything from:
- Luxury homes and vehicles
- Yachts and boats
- Cryptocurrencies and NFTs
- Fine art and collectibles
The goal is twofold: to deprive criminals of their gains and to bolster public safety through reinvestment in anti-crime efforts.
A Reminder of Bitcoin’s Traceability
This case highlights the paradox of Bitcoin and other cryptocurrencies. While they offer a degree of pseudonymity, transactions are permanently recorded on public ledgers. This allows law enforcement agencies to trace funds across borders and over time, especially when working in tandem with international partners.
The AFP’s success in this case underscores how global cooperation and blockchain analysis tools are evolving. What was once a digital Wild West is now subject to increasingly sophisticated oversight.
Although Duffy has not been criminally charged in relation to the 2013 exchange hack, the seizure sets a powerful legal precedent. It shows that governments don’t necessarily need to prove criminal activity in a courtroom to strip away assets tied to suspicious financial histories.
This type of action is especially relevant as crypto adoption accelerates worldwide, and with it, a rise in cyber-enabled financial crime.
The AFP has made it clear that it will continue leveraging its powers under the Proceeds of Crime Act to combat illicit wealth accumulation. As crypto becomes more mainstream, regulators and law enforcement are following closely—and adapting quickly.
Conclusion: A High-Tech Asset Grab With Long-Term Impact
The Australian government’s seizure of $2.88 million in crypto-linked assets serves as a strong warning to cybercriminals and a blueprint for future digital asset investigations.
From a 2013 crypto heist to a 2025 court order, the case shows how patient, multi-jurisdictional investigations can still bring results, even years after the original crime occurred.
For the broader crypto community, it’s another reminder that the blockchain never forgets—and that modern law enforcement has the tools and the will to follow the trail, wherever it leads.
