Australian Bitcoin Millionaire Arrested as Alleged Leader of Major Drug Syndicate

The founder of the Australian startup Auscoin, Sam Karagiozis, has been arrested by the Australian Federal Police. According to news.com.au, authorities believe the 27-year-old businessman, known as the country’s “cryptocurrency king,” was the head of a drug syndicate responsible for importing large quantities of illegal substances into Australia.

Karagiozis is specifically accused of smuggling and possessing 30 kilograms of cocaine, methamphetamine, ecstasy, and ketamine. Police allege that he managed the syndicate’s operations through the darknet (an anonymous, hidden network), using Bitcoin wallets and his legitimate businesses to facilitate drug trafficking.

From Self-Made Success to Criminal Charges

Until now, Karagiozis’s biography was seen as a model story of self-made success. He dropped out of school at 15, worked at McDonald’s, and then ventured into business, dealing in real estate, restaurants, and investments. Karagiozis was one of the first in Australia to believe in the future of cryptocurrency. He invested part of his savings in Bitcoin, founded Auscoin, made a fortune, and began living the traditional millionaire lifestyle with luxury villas, high-end cars, and expensive possessions.

However, due to the sharp drop in Bitcoin’s value—from nearly $20,000 in December 2017 to a fivefold decrease over the following year—Karagiozis lost $3 million. Despite this, just two months ago, he told journalists he was confident that cryptocurrency would eventually regain its lost value.

Assets Frozen and Businesses Shut Down

Currently, the operations of Auscoin and another of Karagiozis’s crypto businesses have been frozen by authorities. His bank accounts, real estate, and other assets have been seized as part of the ongoing investigation.