The Australian Federal Police revealed that malicious actors have compromised thousands of Australian crypto wallets to steal millions in digital assets.

This discovery comes from Operation Spincaster, a global initiative against crypto fraud led by Chainalysis.

Over 2000 Australian Crypto Wallets Compromised

On August 4, the Australian Financial Review reported that over 2,000 crypto wallets were compromised through approval phishing scams. These scams deceive victims into authorizing unauthorized token transfers.

Operation Spincaster, which involves six countries — the US, UK, Canada, Spain, the Netherlands, and Australia—emphasizes the scale of these scams. The investigations generated over 7,000 leads and resulted in approximately $162 million in losses.

In Australia, the Joint Policing Cybercrime Co-ordination Centre (JPC3) assisted in the crypto theft investigations. Detective Superintendent Tim Stainton of the Australian Federal Police highlighted the operation’s importance. According to him, it helped in identifying solutions to the persistent threat of cybercriminals.

“The intelligence we have gathered collaboratively throughout Operation Spincaster has shed a clear light on new tactics used by cybercriminals in their continued efforts to defraud Australians, and it will form a key part of our ongoing investigations to identify cybercrime victims and disrupt offenders in Australia,” Stainton added.

Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets

Experts have emphasized that phishing scams remain a major threat in the crypto space. These attacks involve impersonating legitimate entities to steal sensitive information and access victims’ wallets. Scam Sniffer reported that over 260,000 individuals lost $314 million to phishing scams in the first half of this year.

On a separate note, Australian prosecutors want a Crypto.com user jailed because he misappropriated funds. In May 2021, the crypto exchange accidentally transferred 10.47 million Australian dollars ($6.86 million) to Thevamanogari Manivel and Jatinder Singh instead of a 100 AUD refund. The error occurred due to a misentered account number.

Read more: Top 10 Must Have Cryptocurrency Security Tips

The couple had spent part of the funds before the exchange realized the mistake. With about $4.9 million recovered, prosecutors now seek a prison sentence, arguing that the large sum involved warrants severe legal consequences.

Meanwhile, these incidents underscore the rise of crypto crimes in Australia. A recent Australian Transaction Reports and Analysis Centre (AUSTRAC) report highlighted a rise in criminal use of crypto in the country.