Raid uncovers ACT's 'largest illegal controlled drug distribution network': police

The wide range of drugs were allegedly sold online by the group, said to be operating under the encrypted message handle "OzPharmLabs", and distributed nationally through Australia Post from the "online pharmacy".

"I can confidently say this is the largest seizure of prescription drugs we've ever had in the territory and also down in Victoria as well," Detective Inspector Mark Steel said on Saturday.

Thomas Eric Kelleher, 38, and James Peter Martens, 27, faced the ACT Magistrates Court on Saturday morning, when they both applied for bail.

The two men were each charged with single counts participating in a criminal group, 10 counts of supplying anabolic steroids, seven counts of supply a declared substance and four counts of drug trafficking.

Kelleher, who was refused bail and described as being the "more serious offender", is also charged with possessing a weapon and contravening an order made by a magistrate.

Martens, nicknamed "Thirty" and described by police as the operation's "runner", was granted bail on "strict conditions".

"He's not the mastermind of the whole alleged operation," Legal Aid lawyer Sarah Higgs said on Saturday.

A third man, 39, whom allegedly self-identifies as the "boss" of the operation is set to face the Queanbeyan Local Court on Saturday and is expected to be extradited to the ACT in coming days.

As well as drug trafficking and participating in a criminal group charges, the Googong man is set to be charged with a number of additional offences.

They include dealing with the proceeds of crime, exceeding $1 million, obtaining financial advantage by deception, and dealing in identification material in order to commit an indictable Commonwealth offence.

Speaking to media outside City Police Station, Inspector Steel said police made significant seizures as a result of searches on Friday.

"A house was restrained, five motor vehicles were seized, three motorcycles, hundreds of thousands of dollars in cash, and significant quantities of prescription and controlled drugs," he said.

Multiple bank accounts were also restrained.

ACT Policing, as part of a joint investigation with Victoria Police, allege the group distributed a significant quantity of drugs, including Xanax, anabolic steroids, human growth hormones and THC gummies.

Prosecutor Mark Wadsworth, who opposed both of the men's bids for freedom, said police had found the pair were using encrypted communication software and cryptocurrency.

Police documents tendered to the court allege the operation employs a number of yet to be identified employees such as sales persons and a personal assistant.

The documents detail a number of recorded conversations between the three men.

During one phone call, the yet-to-be extradited Googong man tells Kelleher about being pulled over by police in NSW.

"Lucky the cops didn't search the car ... I had like an ounce of ket [ketamine] and like half an ounce of coke on me," he said.

"Yeah, yeah that could have ended very bad, like phone and then like fake bank accounts."

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Inspector Steel said further charges could be laid pending the digital analysis of devices seized during the searches.

He also said the investigation was ongoing and further arrests were expected to be made.

While seized drugs are still being analysed, the officer said he expected their value to land in the "seven-figure range".

Magistrate James Lawton ultimately refused Kelleher's bail, citing his extensive criminal history and history of non-compliance with court orders.

"It appears he's well versed in the use of encrypted communication applications and did indeed use those to operate the business," the magistrate said.

Mr Lawton described the evidence against the alleged offender as "somewhat overwhelming".

Both men are set to face court again in January.