Australian Police Seizes Over $6M Worth of Crypto Linked to Global Crime

In a significant move against organized crime, the Australian Federal Police (AFP) seized $6.4 million (9.3 million AUD) worth of cryptocurrency from the alleged mastermind behind Ghost. 

Ghost was an encrypted messaging service used by organized crime groups to coordinate illegal activities, such as drug trafficking and money laundering, offering advanced encryption features and message self-destruction. 

The platform was dismantled last month following a two-year investigation coordinated by Europol and global law enforcement agencies, including the AFP.

Details of the Seizure

The 32-year-old suspect, Jay Je Yoon Jung, from New South Wales, was arrested on September 17 as part of AFP’s “Operation Kraken” and now faces multiple charges, including supporting a criminal organization.

It is worth noting that the operation is not affiliated with the well-known crypto exchange Kraken.

Per the statement, the seizure was made possible after analytics specialists at the AFP-led Criminal Assets Confiscation Taskforce (CACT) successfully deciphered the seed phrase belonging to digital wallets retrieved from Jung’s devices found during a raid on his home. 

This allowed the authorities to transfer the funds into secure storage. The assets were restrained under the Commonwealth Proceeds of Crime Act 2002, designed to disrupt criminal networks by seizing their illicit wealth.

“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 organized 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,” stated AFP acting Commander Scott Raven.

The authorities added that they would seek to have the restrained assets forfeited to the Commonwealth, managed by the Australian Financial Security Authority to benefit the country’s crime prevention programs.

This seizure marks the second crypto-related asset freeze under Operation Kraken, following the seizure of $1.4 million (2 million AUD) of assets linked to a crime syndicate in Western Australia earlier this year.

So far, AFP’s Operation Kraken initiative against organized crime has resulted in the seizure of $1.6 million (2.37 million AUD) in cash and (11.09 million AUD) $7.6 million in other assets.