Man jailed for stealing identities to launder $43k in cryptocurrency

A man will spend at least 12 months behind bars after he used stolen identities to launder $43k in bitcoin. Police warned the case highlights the risks Aussies face in sharing their details online.

A fraudster stole the identities of Australians and set up cryptocurrency accounts under fake names to launder tens of thousands of dollars.

Donald Chen, 46, was arrested in June last year trying to withdraw $43,350 in cash from a cryptocurrency ATM in Sydney’s CBD.

Chen used stolen identities to set up several online accounts with a cryptocurrency provider.

The digital currency exchange allows people to convert bitcoin into Australian dollars and withdraw the money at ATMs.

The Australian Federal Police (AFP) was tipped off by the crypto provider over Chen’s suspicious transactions.

That included withdrawing cash from accounts in several different names.

Donald Chen, 46, was sentenced to 16 months jail.

Donald Chen, 46, used stolen identities to launder cryptocurrency.

Police believe the bitcoin was stolen from Western Australia a year earlier.

Mystery still surrounds where Chen sourced the stolen identities, including details from driver’s licences.

However, the AFP said the case served as a warning for Australians to be cautious about what information they shared online.

“Criminals are continually trying to identify new opportunities to profit at the expense of other

people,” AFP Cybercrime Detective Acting Inspector Thomas Walker said.

“But we are focused on identifying and stopping anyone who tries to cheat the system

and defraud others.”

Last financial year, there was an average of one cybercrime report every 10 minutes in Australia.

Chen, who pleaded guilty to money laundering and drug possession offences, was sentenced to 16 months jail last week with a non-parole period of one year.