Five people were arrested on Monday night by a multi-agency operation which had been tracking the alleged international drug cartel in recent weeks.
It's alleged an Estonian skipper departed Vanuatu aboard the cocaine-packed vessel on August 15 en route to Queensland.
Police say he docked nine days later in Coomera on the Gold Coast and met with a 58-year-old UK national, before the pair bought tools and cracked open the concealed drug haul.
They then allegedly met with three Australian men in the Dreamworld car park where police busted them with 40 kilograms of cocaine.
A further 30 kilograms was later found concealed in the yacht's cavities.
The UK and Estonian men are now facing drug importation charges and the three Australians possession of a commercial quantity of an unlawfully imported border controlled drug.
“I believe it is the largest cocaine seizure we've had in Queensland,” Detective Superintendent Jon Wacker said.
He said the cocaine was likely intended for a high-end clientele, given its purity level of more than 80 per cent.
The drugs have an estimated street value of more than $17 million (US$12 million), he said.
AFP Manager Organised Crime Commander David Stewart said the bust would be a 'huge setback' for the international syndicate and likely curb the supply of cocaine throughout the east coast of Australia.
“Organised crime is actually a global enterprise,” he said.
The five men were remanded in custody after appearing in Southport Magistrates Court on Tuesday morning.
Investigations are ongoing.