CEO of the exchange and the operator of cryptomattes Auscoin arrested for drug trafficking in the darknet
Cryptocurrency entrepreneur Sam Karagiosis was arrested last week as part of a raid by the Australian Transaction Reporting and Analysis Center (AUSTRAC).
As a result of the arrest, the licenses of two cryptocurrency companies owned by Karagiosis, including Auscoin, also serving cryptomattes throughout Australia, were suspended. Karagiozis was charged with storing, importing and trafficking about 30 kilograms of psychotropic substances, including ecstasy, methamphetamine, cocaine, and ketamine, through the darknet marketplaces. The police claim that Karagiosis played a “key role” in leading the operations of the illegal drug syndicate.
Earlier, Karagiozis invested $ 15 million in Auscoin, which tried to deploy Australia's first network of cryptomattes across the country. In recent years, Sam Karagiosis often featured in the Australian media.
Last month, Auscoin got into prime-time Australian television news coverage, in which the company's proposed plan to set up 1200 cryptomattes was described as “$ 80 million fraud,” based on “grandiose promises.” At that time, Auscoin had already installed four cryptomat in Australia and was planning to finance the deployment of another 1,200 terminals through the initial placement of tokens.
In January of this year, the media reported that Karagiosis suffered a loss of $ 2.13 million during the bear market of cryptocurrencies. At the same time, Karagiozis also claimed that Auscoin’s turnover reaches $ 360,000 per week. In early 2018, the founder of Auscoin urged investors to buy BTC, arguing that “the first quarter of 2018 is probably the last opportunity people will ever get to purchase bitcoin for less than 20,000 Australian dollars for a coin.”
Last month it was reported that AUSTRAC officially registered 246 cryptocurrency exchanges. Industry participants called this step a crucial step towards legitimizing cryptoactive assets. The registration process includes conducting individual checks and other anti-money laundering procedures against organizations.