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The Australian Federal Police (AFP) recently decrypted a seed phrase to confiscate $9.3 million (AUD 6.4 million) in cryptocurrency from a suspect.
The individual is accused of operating “Ghost,” an encrypted messaging app reportedly used by criminal organizations.
This marks the second time authorities have seized assets in their ongoing operation against the alleged creator of the Ghost app.
AFP Plans to Transfer $6.4M Worth of Crypto to Government “in Due Course”
In a press release on October 2, the AFP stated that the confiscated funds are tied to an investigation of Jay Je Yoon Jung, the alleged creator of the encrypted messaging app “Ghost.”
Australian Authorities Seize $6.4M in #Crypto
Australian Federal Police (#AFP) seized $6.4 million in #cryptocurrency as part of an investigation into the organized crime network behind the Ghost encrypted communication app. The suspect, Jay Je Yoon Jung, faces multiple charges…— Dehua (@DehuaFi) October 2, 2024
Jung developed the Ghost app nine years ago, when he was 23 years old. The app was covertly pre-installed on modified smartphones, which were then sold to illicit buyers for approximately AUD 2,450 ($1,600). This cost covered a six-month subscription, along with technical support.
The app gained popularity among serious offenders, including drug traffickers, arms dealers, and murderers. Its anonymous features enabled these criminals to communicate discreetly within their networks and track illicit drug shipments.
Jung was arrested on September 17 and charged with supporting organized crime, as the enforcement agency believed criminal networks used the app for illegal activities.
His home was searched, and the AFP’s Criminal Assets Confiscation Taskforce (CACT) cracked seed phrases connected to crypto accounts recovered from devices.
This allowed them to seize the illicit crypto funds transferred to government storage under the Commonwealth Proceeds of Crime Act 2002.
This law allows Australian authorities to seize assets obtained through illegal activities and use them to support law enforcement and community crime prevention initiatives nationwide.
The latest seizure is part of the AFP’s broader “Operation Kraken,” an ongoing effort to dismantle organized crime linked to the Ghost app.
The latest announcement from the AFP follows a recent FBI report indicating that investors lost $5.6 billion to crypto-related financial crimes in 2023, highlighting the ongoing challenges in combating such trends.
