The Australian National Police Agency (AFP) has gained access to a suspect’s AUD9.3 million ($6.41 million) in crypto assets by decrypting the wallet’s seed phrase.
On September 17, law enforcement officers arrested a 32-year-old alleged administrator of the encrypted messenger Ghost as part of Operation Kraken. According to authorities, the app is specifically designed for organized crime, which is involved in drug trafficking, money laundering, and contract killings.
Criminals purchased modified smartphones for $1,600, which included a six-month subscription to an encrypted network and technical support. As of September 17, the AFP counted 376 such active devices in the country.
Ghost came to the attention of the police in 2022, although it was created about nine years ago. The messenger administrator is charged with six counts, including supporting a criminal organization. He faces up to 26 years in prison.
The suspect's cryptocurrency was seized after a specialist from the AFP's Criminal Asset Confiscation Task Force (CACT) deciphered the seed phrase by analyzing digital devices found in his home. This allowed law enforcement to transfer the funds to their own secure storage.
The agency's statement does not explain what method the analyst used to crack the mnemonic, which administrator devices he was accessing, or whether the seed phrase was 12 or 24 words long.
This is the second case of digital asset seizures during Operation Kraken - in September, the AFP froze assets worth AUD 2 million ($1.38 million) of suspects.
Now the government can generate our seed phrases?🤔❤️🔥🚨