AFP Seizes $6.4M in Crypto from Alleged Crime App Mastermind

The Australian Federal Police (AFP) announced on Tuesday the seizure of $6.4 million in cryptocurrency as part of an investigation targeting the alleged mastermind behind “Ghost”. An encrypted communication app purportedly used by organized crime syndicates.

The suspect, 32-year-old Jay Je Yoon Jung from New South Wales, was arrested on September 17 under “Operation Kraken.” He now faces multiple charges. Including supporting a criminal organization, according to an official statement by the AFP.

Cracking the Crypto

The significant seizure was made possible after AFP analysts successfully decrypted the seed phrases from cryptocurrency wallets retrieved during a raid on Jung’s residence. This breakthrough allowed authorities to transfer the illicit funds into secure storage. The assets have been restrained under the Commonwealth Proceeds of Crime Act 2002. Legislation designed to disrupt criminal networks by seizing assets derived from unlawful activities.

This marks the second crypto-related asset freeze under Operation Kraken. Following the restraint of assets linked to a syndicate in Western Australia earlier this year. It’s important to note that Operation Kraken has no affiliation with the popular crypto exchange of a similar name.

Operation Kraken’s Ongoing Success

Since its inception, Operation Kraken has made significant strides in combating organized crime:

• 46 arrests have been made.
• 93 search warrants have been executed.
• 30 illegal firearms have been seized.
• Authorities have prevented more than 200 kilograms of illicit drugs from entering the Australian market.
• Over $1.6 million in cash has been confiscated.

The AFP-led Criminal Assets Confiscation Taskforce, which spearheads Operation Kraken, collaborates with agencies including the Australian Taxation Office, AUSTRAC, and the Australian Border Force. Established in 2012, the task force has restrained more than $759 million in criminal assets to date.

A Blow to Organized Crime

AFP Assistant Commissioner Nigel Ryan commented on the operation’s success: “This arrest and significant crypto seizure highlight the AFP’s commitment to disrupting criminal networks at every level. By targeting the financial assets of these organizations, we strike at the heart of their operations.”

As investigations continue, the AFP is expected to seek the permanent forfeiture of the seized cryptocurrency. Authorities emphasize that such actions are crucial in crippling the financial networks of organized crime syndicates operating both within Australia and internationally.

Community Impact

The use of encrypted communication apps like Ghost has been a growing concern for law enforcement agencies worldwide. These platforms can provide a secure channel for criminal activities, making it challenging for authorities to intercept and prevent illegal operations.

By dismantling the infrastructure supporting these activities, the AFP aims to reduce the prevalence of organized crime and protect communities from the associated harms, including drug trafficking and illegal firearms distribution.