365Crypto
It seams lately, that law enforcements are working hard to get their hands on crypto, especially after the sale of confiscated bitcoins netted the German government more than $1 billion.
The Australian Federal Police (AFP) recently accessed $6.4 million worth of cryptocurrency by cracking the seed phrase of a suspect’s account. The suspect, Jay Je Yoon Jung, is accused of creating “Ghost,” an encrypted messaging app allegedly used by organized crime groups.
Ghost Messaging App Linked to Crime
Authorities claim that Ghost was designed for criminals, enabling them to coordinate activities like drug trafficking, money laundering, and contract killings. The AFP said that Jung sold modified smartphones with access to the Ghost app for about $1,600, providing users with six months of service and tech support.
Jung allegedly maintained the app with regular updates, but law enforcement was able to infiltrate the software and gain access to the modified phones’ data.
How the AFP Seized the Crypto
In a statement on October 2, the AFP explained that analysts from the Criminal Assets Confiscation Taskforce (CACT) cracked the seed phrase—a crucial element required to access cryptocurrency wallets. It is unclear what wallet the suspect was using. This allowed the authorities to transfer the seized crypto into secure AFP storage. The funds may later be used to support law enforcement initiatives.
This marks the second major asset seizure in the AFP’s “Operation Kraken” against Jung and Ghost app users. In August, they had already confiscated $1.4 million in cryptocurrency and property.
Ongoing Legal Proceedings
Jung was arrested on September 17 and charged with five crimes, including supporting a criminal organization. He could face up to 26 years in prison. The AFP did not disclose how they cracked the seed phrase, citing ongoing legal proceedings.
AFP’s Warning to Criminals
AFP Acting Commander Scott Raven issued a strong message to those trying to hide illegal assets in real estate, cryptocurrency, or cash. He said, “We will identify your ill-gotten goods and take them away from you, leaving you with nothing.”
