Australian Federal Police Seize $6.4 Million in Cryptocurrency from Encrypted App Creator

In a groundbreaking move against organized crime, the Australian Federal Police (AFP) has successfully seized $6.4 million (AUD 9.3 million) in cryptocurrency from the creator of an encrypted messaging app called “Ghost”. The operation targeted Jay Je Yoon Jung, who is suspected of running the app that was allegedly tied to multiple illegal activities.

The AFP revealed on October 2, 2024, that a Criminal Assets Confiscation Taskforce (CACT) analyst was able to decrypt a seed phrase found on devices seized from Jung’s home. This breakthrough allowed authorities to transfer the seized cryptocurrency into secure AFP custody, marking a significant victory in the ongoing battle against cybercrime.

The seized funds are expected to be transferred to the government soon, with plans to allocate them towards strengthening law enforcement initiatives. This move demonstrates the AFP’s commitment to dismantling the financial networks that support organized crime. The operation, known as Operation Kraken, is the second major asset seizure involving Jung and users of the Ghost app. In August, the AFP had already seized $1.4 million in cryptocurrency along with properties, further crippling the criminal network’s operations.

AFP acting Commander Scott Raven stated, “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.” However, the AFP has chosen to remain discreet about the specific methods used to decrypt the seed phrase and the details of the devices recovered, citing ongoing legal proceedings.

Jung was arrested on September 17 after extensive investigative efforts, and he now faces charges that could result in up to 26 years of imprisonment. He is accused of designing the Ghost app specifically for criminal use, enabling activities such as drug trafficking, money laundering, and even contract killings. The app was distributed through resellers who provided a modified smartphone with six months of access to the app and tech support for around $1,600.

The AFP’s strategic infiltration of the app and subsequent updates by Jung allowed law enforcement to covertly access the content of the modified phones, showcasing the technical expertise and proactive measures employed by the AFP and CACT. This task force comprises specialists from various Australian agencies, demonstrating a united front in the fight against crime.

Overall, the successful seizure of $6.4 million in cryptocurrency from the creator of the Ghost app represents a significant blow to organized crime and highlights the dedication of law enforcement agencies in combating illicit activities in the digital realm.