Australia Arrested Accused of Money Laundering Through Cryptocurrency

Australian police have arrested seven people linked to the Changjiang exchange, which is controlled by a Chinese syndicate. They are accused of laundering 228 million Australian dollars ($144 million) in both fiat money and cryptocurrencies.

The operation involved more than 300 police officers who conducted 20 searches across Australia and seized more than 50 million Australian dollars ($32 million) worth of property, cars and premium goods.

According to local law enforcement officers, the multibillion-dollar Changjiang currency exchange was secretly run by the Chinese Long River syndicate.

The money laundered through the currency exchange "was linked to the operation of the MetaTrader investment app and other platforms working with foreign exchange and digital assets."

More than 10 billion Australian dollars ($6.3 billion) are reported to have passed through the firm over the past three financial years. And while most of the funds she dealt with are believed to be legitimate, Australian police allege that at least A$228 million was derived from fraud, trafficking in illegal goods and violent crime.

An investigation into the syndicate's activities was launched in August 2022. Australian police first took notice of the firm during the COVID-19 lockdown, when it renovated the façade of its office in Sydney.

Assistant Commissioner Steven Dametto said the investigation was complex because "the syndicate operated in plain sight and had prominent signage across the country, it did not operate in the shadows like other money laundering organizations."

The Changjiang Currency Exchange has also offered clients legal advice on anti-money laundering measures in an attempt to create the appearance of a law-abiding firm. To promote the business, the company even hired former Australian government minister Gary Hardgrave, who clarified the situation in an interview with the Australian Financial Review:

I was hired to advertise the company. I am not involved in its day-to-day activities," the former official said.