The Australian Federal Police (AFP) announced they had successfully “deciphered” a seed phrase granting access to $6.4 million (9.3 million Australian dollars) worth of cryptocurrencies linked to a suspect.
The individual, Jay Je Yoon Jung, is accused of creating an encrypted messaging app, “Ghost,” reportedly used by organised crime networks. On October 2, the AFP revealed that the funds were seized after a Criminal Assets Confiscation Taskforce (CACT) analyst cracked the seed phrase during a forensic examination of digital devices recovered from Jung’s residence.
“This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage,”
the agency said.
The AFP stated that the seized cryptocurrency will be transferred to the government “in due course” and may later be used to fund law enforcement initiatives.
AFP Acting Commander Scott Raven emphasised,
“Whether hidden in real estate, cryptocurrency, or cash, we will find your ill-gotten gains and confiscate them, leaving you with nothing.”
The AFP noted that Jung was arrested on September 17 and charged with five offences, including supporting a criminal organisation, facing a potential 26-year prison sentence.
According to the AFP, Jung created the Ghost app specifically for criminal activities such as drug trafficking, money laundering, and contract killings. Modified smartphones, including six months of access to the app and tech support, were sold for around $1,600. The AFP also revealed that Jung consistently updated the app, but authorities managed to infiltrate the software and access the content on the modified devices.
The AFP has been actively involved in investigating a large-scale cryptocurrency phishing operation that compromised over 2,000 Australian digital wallets. In August 2024, Detective Superintendent Tim Stainton highlighted the importance of intelligence from Operation Spincaster, a probe by Chainalysis, which uncovered widespread “approval phishing” attacks across six countries, including Australia. Stainton emphasised that the findings revealed new cybercriminal tactics, aiding efforts to identify victims and disrupt illegal activities in the country.
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