Sam Karagiozis, the creator of Auscoin, has been charged with trafficking roughly 30kg of drugs – including cocaine and MDMA.
The 27-year-old was charged by the Australian Federal Police (AFP) with drug trafficking on March 7th 2019, reports The Age.
Reportedly, the AFP allege that Karagiozis played a pivotal role in governing an organised crime syndicate.
It is claimed that the syndicate utilised various dark web sites, Bitcoin accounts, and legitimate businesses for the acquisition and distribution of the drugs.
The AFP teamed with financial intelligence agency AUSTRAC to create a joint task force which raided properties linked to Karagiozis in Bulleen, Templestowe, and Malvern.
The task force seized steroids, crypto-related items, and cash.
Karagiozis was charged with 14 offences relating to drug importation, trafficking, and possession. He has been denied bail.
After the arrest, the AFP suspended the registration of two digital currency exchange businesses linked to Karagiozis.
At the same time, it placed restraining orders on assets worth $2 million including bank accounts, real estate, cars, crypto, and cash.
The arrest was linked to raids on properties in Mernda and Kew back in October 2017.
Reportedly, during the raids in 2017, the AFP unearthed 15.8 kilograms of MDMA, 2.6 kilograms of cocaine, and more than a kilogram of ketamine.
It is believed that the drugs were sourced on the dark web and sent to Australia in the post.
Karagiozis is reportedly set to face the Melbourne Magistrates Court in June.
Karagiozis founded Auscoin Group in 2017 and raised $30 million from its initial coin offering (ICO).
He also had plans to open 1,200 Auscoin ATMs in shopping centres around Australia, but his ICO raised less than $2 million.
There are roughly 30 Australian shopping centres that currently have Auscoin ATMs.
Interested in reading more about Karagiozis’ Auscoin ATMs? Discover how Karagiozis stated his company was turning a profit of AU$500,000 per week back in January.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.