Coinspeaker AFP Seizes $6.4 Million Cryptocurrency from Encrypted App Creator
In a major move against organized crime, the Australian Federal Police (AFP) cracked a key code, unlocking $6.4 million (AUD 9.3 million) in cryptocurrency. The operation targeted Jay Je Yoon Jung, suspected of running the encrypted messaging app “Ghost”, allegedly tied to multiple illegal activities.
On October 2, 2024, the AFP revealed that a Criminal Assets Confiscation Taskforce (CACT) analyst successfully decrypted a seed phrase found on devices seized from Jung’s home. This breakthrough enabled authorities to transfer the seized cryptocurrency into secure AFP custody, marking a significant win in the fight against cybercrime.
AFP Strengthens Anti-Crime Efforts
The seized funds are expected to be transferred to the government shortly, with plans to allocate them to strengthen law enforcement initiatives. The move shows the Australian Federal Police’s determination to weaken the financial networks that fuel organized crime.
This operation, known as Operation Kraken, marks the second major asset seizure involving Jung and the users of the Ghost app. In August, the AFP had already seized $1.4 million in cryptocurrency along with properties, further debilitating the operational capabilities of the criminal network involved.
“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,” stated AFP acting Commander Scott Raven.
However, the AFP has maintained discretion regarding the specific methods used to decrypt the seed phrase and the details of the devices recovered, citing ongoing legal proceedings. The arrest of Jung on September 17 was a culmination of extensive investigative efforts, leading to charges that could result in up to 26 years of imprisonment.
Operation Kraken’s Broader Implications
Jung is accused of designing the Ghost app explicitly for criminal use, facilitating 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 approximately $1,600.
The AFP’s strategic invasion of the app and subsequent updates by Jung allowed law enforcement to infect the modified phones to access their content covertly, showing the technical prowess and proactive measures employed by the AFP and CACT. This task force comprises specialists from multiple Australian agencies, showing a united front in the fight against crime.
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AFP Seizes $6.4 Million Cryptocurrency from Encrypted App Creator