Crypto King Arrested Over AFP Crime Investigation

Karan Balwani

March 11, 2019 11:11 am

Crypto King Arrested Over AFP Crime Investigation
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Sam Karagiozis, popularly known as the crypto king has been accused by the police for the possession on charges of possessing over 66 pounds (30 kg) of drugs and running an organizing crime syndicate.

The crypto king revealed that he had lost about $3 million as a result of Bitcoin’s price crash. The problems were far from over for the 27-year old as he was arrested by the police over charges of drug possession.

The news was confirmed by the spokeswoman of the Australian Federal Police (AFP). Mr. Karagiozis was arrested on March 7 as a result of an ongoing investigation into a crime syndication.

Sam was charged with the importing, trafficking and possession of 30 kilograms of various drugs that includes MDMA, cocaine, ketamine and methamphetamine. The authorities also seized steroids, cash and other cryptocurrency related items.

It is believed that Sam played a key role in running and directing the crime syndicate, which employs dark net websites, bitcoin accounts and legitimate businesses for sourcing, payments and the distribution of illegal drugs.

The police have strong reasons to believe that Mr. Karagiozis played a key role in directing these criminal activities. The sudden arrest was made through a joint task force consisting of AFP and the Australian Transaction Reports and Analysis Centre (AUSTRAC), raiding multiple properties in Victoria.

AUSTRAC also suspended two cryptocurrency exchanges that were linked to the suspect, including the popular Auscoin. Assets worth $2 million was frozen by the authorities that includes bank accounts, properties, cryptocurrencies and cash.

Dr. Nathan Newman, National manager, regulatory operations, AUSTRAC said 

“AUSTRAC’s role is to deter and disrupt criminal exploitation of Australia’s financial system, and we take swift action where there is a reasonable risk of compromise. Our decision to suspend the registration of the two businesses means they can no longer lawfully operate.”

Paul Hopkins, Detective superintendent, AFP said

“When you take the profit out of crime, you hit offenders where it hurts most. Combined with serious criminal charges attracting long prison sentences, this highlights how trafficking drugs is simply not worth in the long run.”

In an past interview, Mr. Karagiozis talked about Bitcoin’s falling prices, saying

“Let’s be real, it would be a lot nicer if it hadn’t dropped in value – I’m not going to sit here and say it doesn’t bother me – but at the end of the day, I believe in the long term… I only ever put in what I could afford to lose. I’m definitely confident Bitcoin will get back to where it once peaked, and it will more than likely pass that again – however, I don’t think that will happen within a six-month period.”

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