Victoria Police in Australia recently executed their first cryptocurrency seizure, valued at $142,679, after new legal measures granted officers authority to confiscate digital assets through search warrants. The landmark confiscation, detailed in Victoria Police’s 2023–24 annual report released on October 31, follows updates to the Confiscation Act 1997 that empower police to control and seize digital assets.
Legal Shift Allows Crypto Seizures Through Search Warrants
The law change, effective from August 1, 2023, allows Victoria Police to seize cryptocurrencies during criminal investigations if the assets are discovered through search warrants. Officers are authorized to access devices, retrieve stored information, transfer or control the assets, and even conduct necessary transactions to secure exclusive control over the seized crypto.
During a recent drug trafficking investigation, police found recovery phrases, or seed phrases, which allow access to specific crypto wallets, in the suspects’ documents. With these recovery phrases, the Cryptocurrency Operations team accessed six wallets, securing $142,679 in various cryptocurrencies. The annual report called this seizure a significant step in enforcing crypto-related asset recovery under the updated legislation.
Enhanced Legal Framework Simplifies Cryptocurrency Confiscation
The new powers streamline the crypto seizure process for law enforcement, enabling the retrieval of digital assets stored on any property or device relevant to the investigation, such as hardware wallets. Police can seize, transfer, or alter these digital assets during the confiscation process, reinforcing the effectiveness of Victoria’s updated legal framework for dealing with crypto assets linked to criminal activities.
This shift in law enforcement practices comes amid growing regulatory efforts by Australia’s financial regulators. The Australian Securities and Investments Commission (ASIC) is also preparing to mandate that cryptocurrency exchanges acquire financial services licenses. ASIC Commissioner Alan Kirkland highlighted that such requirements are essential to align with existing laws covering major crypto assets like Bitcoin, reinforcing Australia’s regulatory stance on digital assets.
