The Australian Federal Police (AFP) has cracked a seedphrase to unlock the crypto wallet of a suspect holding around $6.4 million (or 9.3 million Australian dollars) in crypto.
This development is part of an ongoing investigation into an encrypted messaging app called “Ghost,” said to be used by various criminal organizations.
The AFP mentioned that this breakthrough was possible after a Criminal Assets Confiscation Taskforce (CACT) analyst “deciphered the account’s ‘seed phrase’ following analysis of digital devices” found at the home of the Ghost app creator Jay Je Yoon Jung.
The AFP explained that successfully cracking the seed phrase allowed them to process and transfer the cryptocurrency into their own cold storage solution. The authority further noted:
“The cryptocurrency was restrained under the Commonwealth Proceeds of Crime Act 2002. The restraint is the second restraint of assets linked to AFP Operation Kraken, after assets linked to a syndicate in WA were restrained by the CACT in September.”
Notably, while the seized funds are currently in the custody of the AFP, they are set to be transferred to the government in due course.
Some of the funds are expected to be used for law enforcement initiatives such as “crime prevention and intervention” later on.
Source: AFP.gov.au
Acting Commander Scott Raven emphasized the AFP’s commitment to confiscating assets gained through illegal activities, stating:
"The restraint of these assets shows the technical capabilities and powers that the AFP, and our partners through the CACT, are able to bring to bear on organised crime.
Whether you have tried to hide them in real estate, cryptocurrency or cash, we will identify your ill-gotten goods and take them away from you, leaving you with nothing."
Allegations Against the Ghost App and Its Creator
The suspect, Jay Je Yoon Jung, was arrested on September 17 and has been charged with five offences, including supporting a criminal organization. He faces a maximum prison sentence of 26 years.
The AFP alleges that Jung designed Ghost to help people commit crime. Additionally, they claim the app has been utilized in all manner of nefarious behaviour from “drug trafficking to money laundering even contract killings.”
The phones modified with access to the app were sold for about $1,600, according to the Authorities. They added that purchasing the phone came with six months of access as well as technical support.
According to the AFP, Jung consistently pushed out updates to the app to ensure its functionality for its users. However, the authorities still managed to covertly infiltrate the Ghost platform, giving them access to the content on the modified phones.
