Man arrested in alleged $5m bushfire extortion attempt

A man has been arrested in Melbourne's northeast following an alleged $5 million bushfire extortion attempt.

Police allege the 27-year-old man from Bundoora sent an online message to a Queensland emergency service last year demanding the hefty sum be paid in crypto currency within three days or a bushfire would be lit.

Investigators traced the message back to Victoria and last week a search warrant was executed at a Bundoora address, where police seized several items, including two computers and a phone.

No money was paid and the threat was never carried out.

The man was taken into custody on Monday and charged with extortion with threat to endanger life, threat to destroy/damage property, possessing a drug of dependence, and failing to provide information under a warrant.

He is set to appear in Heidelberg Magistrates Court on August 1.