Australian police arrested 55 people and seized $37.9 million in encryption assets, with AN0M chat records serving as key evidence.

The South Australian police achieved significant results in the third phase of “Operation Ironside”, arresting 55 suspects linked to large-scale Crypto Assets related crime groups, and filing 800 charges. In this investigation conducted jointly by the Australian Federal Police (AFP) and the FBI, authorities seized approximately AUD 58 million (USD 37.9 million) in encrypted assets. The success of this operation hinged on the use of the encrypted communication application AN0M developed by the FBI, with intercepted chat logs becoming key evidence for convictions after receiving approval from the High Court.

Undercover App AN0M Achieves Success: Successfully Strikes Down Crypto Assets Crime Network

The success of the “Iron Edge Operation” marks a significant breakthrough for law enforcement agencies in using advanced technology to combat organized Crypto Assets crime.

• Key Tool: The FBI developed an encryption communication application called AN0M and secretly embedded it into modified phones, which lacked cameras, GPS, or browsers, to attract criminals seeking secure communication.
• Decrypting encryption: The FBI and AFP collaborated to develop a world-first capability to decrypt encrypted communications, secretly intercepting all criminal data sent through the AN0M platform.
• Conclusive Evidence: After the High Court approved the use of AN0M messages as evidence, authorities were able to track illegal communications related to drug trafficking and Crypto Assets transactions.
• Arrests and Charges: South Australian police arrested 55 suspects and laid 800 charges. The operation involved 300 police officers participating in multiple raid actions.

Global Crackdown: The Abuse of Crypto Assets Poses a “Burden” on Law Enforcement Agencies

“Operation Iron Borders” is a microcosm of the global fight against the abuse of Crypto Assets, but the warning from Europol indicates that the complexity of crypto crime is putting tremendous pressure on law enforcement agencies.

• The methods of crime are becoming more complex: Europol recently warned that the abuse of Crypto Assets is becoming “increasingly complex.” The agency's report points out that the growing complexity of criminal strategies poses risks to the Crypto Assets industry and its victims.
• Increased Investigation Burden: Burkhard Mühl, head of Europol's European Financial and Economic Crime Centre, stated that investigating these crimes related to Crypto Assets has become a “burden” for law enforcement agencies worldwide.
• Ongoing Deterrence: South Australia's Deputy Police Commissioner Linda Williams stated that this arrest operation is “unprecedented” and has sent a “strong deterrent message” to organized criminals. She expects more arrests in the future.

The cryptocurrency industry response: Enhancing compliance and security technology is imminent.

The enhancement of law enforcement agencies' efforts and efficiency in combating encryption crimes has imposed higher compliance and anti-money laundering (AML) requirements on Crypto Assets trading platforms and custodial service providers.

• Strengthen AML measures: Exchanges and related institutions need to further enhance their AML and KYC processes to prevent criminals from using their platforms for illegal asset transfers and money laundering.
• Beware of new types of crime: The industry needs to continuously pay attention to the increasingly complex criminal strategies warned by Europol and invest in more advanced blockchain analysis and security technologies.

Conclusion

The Australian police achieved a significant victory in “Operation Ironside”, particularly with the seizure of hundreds of millions of dollars in Crypto Assets, which once again proves that Crypto Assets have become an important medium for organized crime activities. The successful application of the AN0M undercover app marks an enhancement in law enforcement's ability to crack encrypted communications. In the face of increasingly complex criminal methods, the encryption industry must maintain close cooperation with regulatory and law enforcement agencies, continuously strengthen compliance efforts, and effectively resist the erosion of illegal activities.