The Australian Federal Police said they recently “deciphered” a seed phrase to access a suspect’s $6.4 million (9.3 million Australian dollars) in crypto.
The suspect is accused of being behind an encrypted messaging app called “Ghost,” which authorities claim is used by organized crime.
The AFP said on Oct. 2 that the crypto was seized after a Criminal Assets Confiscation Taskforce (CACT) analyst “deciphered the account’s ‘seed phrase’ following analysis of digital devices” recovered from the home of Jay Je Yoon Jung, the alleged creator of the encrypted messaging app.
“This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage,” the agency said.
The AFP said it will transfer the crypto to the government “in due course,” and it may be used later to fund law enforcement initiatives.
It’s the second time assets have been seized in the AFP’s operation against the alleged Ghost app maker and its users — called Operation Kraken — after $1.4 million in cryptocurrency and properties were taken in August.
“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,” said AFP acting Commander Scott Raven.
The AFP did not respond to Cointelegraph’s questions about how it deciphered the seed phrase or what devices were recovered from Jung’s home, saying the matter is before the court.
Jung was arrested on Sept. 17 and charged with five offenses, including supporting a criminal organization. He faces a maximum of 26 years in jail.
Jung (left) being perp-walked after his arrest in Sydney. Source: AFP
The AFP said Jung built Ghost solely for use by criminals, who utilized it to organize drug trafficking, money laundering and even contract killings.
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Resellers sold a modified smartphone with six months of access to the messaging app and tech support for about $1,600, the AFP said.
Jung pushed out regular updates to Ghost, the agency said, adding that it was able to covertly infiltrate the software and infect the modified phones to access their content.
The CACT is led by the AFP and brings together specialists — including crypto experts — from the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force.
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