The Australian Federal Police disclosed that an analyst had cracked the seed phrase of a cryptocurrency wallet associated with the purported creator of a criminal syndicate’s communication application.
The AFP confirmed that they had successfully “deciphered” a seed phrase, giving them access to $6.4 million (AU$9.3 million) in crypto assets belonging to a suspect.
The suspect is accused of operating an encrypted messaging platform called “Ghost,” which authorities claim is employed by organized crime networks.
On October 2, the AFP announced that the Criminal Assets Confiscation Taskforce (CACT) analyst seized the crypto assets after decoding the account’s “seed phrase” by analyzing digital devices retrieved from the residence of Jay Je Yoon Jung, the suspected creator of the encrypted messaging app.
“This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage,” the agency said.
The AFP noted that it intends to hand over the cryptocurrency to the government “in due course,” which may later support law enforcement efforts.
This marks the second asset seizure by the AFP in its operation, known as Operation Kraken, against the alleged maker of the Ghost app and its users, following its confiscation of $1.4 million in cryptocurrency and properties back in August.
“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,” said AFP acting Commander Scott Raven.
The AFP did not respond to questions about the methods used to decipher the seed phrase or the devices retrieved from Jung’s residence, citing that the case is currently before the court.
Authorities arrested Jung on September 17 and charged him with five offenses, including assisting a criminal organization, which could result in a maximum prison sentence of 26 years.
Read also: How Australia regulator removed over 7,300 fraudulent websites to combat investment fraud.
According to the AFP, Jung allegedly developed Ghost for exclusive use by criminals, who used it for drug trafficking, money laundering, and even contract killings.
The AFP stated that resellers marketed a modified smartphone that provided six months of access to the messaging app along with tech support, priced at around $1,600.
The agency reported that Jung issued regular updates to Ghost, allowing them to discreetly infiltrate the software and infect the modified devices to access their content.
The CACT, directed by the AFP, includes specialists such as crypto experts and representatives from the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC, and Australian Border Force.
