Joshua Hodge busted in $235,000 ‘sophisticated’ bitcoin scheme

An ex-navy engineer laundered nearly a quarter of a million dollars in drug profits using Bitcoin. We reveal how the ‘sophisticated scheme’ was discovered.

A drug-dealing ex-navy engineer used cryptocurrency to distribute nearly a quarter of a million dollars in profits to mystery “criminal elements”.

Joshua Hodge pleaded guilty in the Supreme Court in Darwin to using bitcoins in a “sophisticated scheme” to launder $235,000 for a Territory drug network.

Chief Justice Michael Grant said the father-of-three’s life spiralled after witnessing horrors while in the Defence force, turning to hard drugs and falling in with criminals.

Hodge was 29 when his Berry Springs home was raided by police in November 2021, uncovering a hydroponic grow room hidden inside a shipping container.

Inside police found five cannabis plants, cannabis, cocaine and methamphetamine, a cash-counting machine, five mobile phones and $800 in cash.

A Darwin father used Bitcoin to launder $235,000 to “criminal elements”.

Police also seized a $100,000 excavator, which was stolen from a Arnhem Highway construction site two months earlier.

Justice Grant said there was no doubt Hodge was complicit in hiding the expensive machine, with the intention to resell it on behalf of “criminal elements”.

Despite being unemployed for almost 18 months, police noticed Hodge continued to receive cash bank deposits totalling $280,000.

Most of that money was split into 40 individual bitcoin transactions across a number of digital wallets.

“It involved the very significant amount of $235,000 and a relatively sophisticated scheme involving the purchase of cryptocurrency and the transfer of that currency,” Justice Grant said.

A Darwin father split $235,000 into 40 individual bitcoin transactions across a number of digital wallets

The court heard police were unable to determine who owned those digital wallets.

After being released on bail in December 2021, Hodge stole $17,000 in goods from the Yarrawonga Bunnings by manipulating a payment system over a month-long period.

“It was brazen and it was repetitive and it was committed while you were on bail,” Justice Grant said.

A second police raid on the Berry Springs property in March found 32 grams of cannabis seeds, a small amount of methamphetamine and cannabis plant material.

Justice Grant said although there was only a trafficable amount found during the two raids, based on context it was clear Hodge was involved in a drug supply scheme.

He said before becoming a crypto drug trafficker, Hodge served for eight years in the Royal Australian Navy.

Justice Grant said Hodge fell down a “slippery slope” after leaving Defence, switching his heavy drinking habits to meth.

“You attribute that usage to coping with stress, depression and post-traumatic stress disorder from your experiences in the navy,” he said.

“The psychiatrist reported that you had experienced a number of traumatic encounters during your navy service involving refugee vessels and illegal fishermen.”

Justice Grant said this substance abuse was the “root” of the Darwin father’s offending.

He said while Hodge had only been hit with possession charges, it was clear “you were involved in the supply of dangerous drugs”.

Hodge pleaded guilty to dealing with the proceeds of crime, possessing a trafficable quantity of cannabis plants, seeds, material and methamphetamines and receiving stolen property, and stealing.

On November 10, he was sentenced to four years in prison, with eight months already served.

But Hodge will be eligible for release in February, with the remaining three years suspended subject to supervision by Community Corrections with strict conditions.

“The most important ones are not possessing or consuming drugs or alcohol,” Justice Grant told the father-of-three.

“That is not going to be easy, but it is going to your benefit and to the benefit of your

family.”

Hodge was also ordered to pay back the $17,353 to Bunnings over the next two years.

Originally published as Joshua Hodge busted in $235,000 ‘sophisticated’ bitcoin scheme