Australian police have seized $6.4 million in cryptocurrency linked to organized crime, showcasing their technical capabilities in combating illicit activities.
Australian authorities have made a significant breakthrough in their fight against organized crime by seizing approximately $6.4 million (AU$9.3 million) in cryptocurrency. This operation, led by the Australian Federal Police (AFP), involved deciphering a wallet's seed phrase linked to the creator of the encrypted messaging app, Ghost, which is allegedly used for illicit activities.
The AFP's Criminal Assets Confiscation Taskforce (CACT) announced the seizure on October 2, 2024. The operation targeted Jung, who is believed to have developed Ghost for criminal use, including drug trafficking and money laundering. The authorities managed to access the cryptocurrency by analyzing digital devices linked to Jung, allowing them to decode the seed phrase of the wallet.
Acting Commander Scott Raven emphasized the importance of this operation, stating that it showcases the AFP's technical capabilities in combating organized crime. He warned that no matter how criminals attempt to hide their assets—be it in real estate, cryptocurrency, or cash—the AFP will identify and confiscate these ill-gotten gains.
A seed phrase is a series of random words that allows users to access or recover their cryptocurrency. It is crucial for safeguarding digital assets. The AFP's ability to decipher the seed phrase raises questions about the methods used, although the agency has not disclosed specific details, citing ongoing legal proceedings.
Operation Kraken is a broader initiative aimed at dismantling organized crime networks utilizing the Ghost app. This recent seizure marks a significant milestone in the operation, which has already led to the confiscation of $1.4 million in crypto and properties linked to the app in August. The operation has also resulted in:
Experts in blockchain security, such as Deddy Lavid, CEO of Cyvers, suggest that real-time monitoring of cryptocurrency wallets could further enhance law enforcement's ability to track and prevent criminal activities. By identifying suspicious patterns, authorities can act before assets are moved beyond reach.
Lavid stated, "Real-time detection and analysis of on-chain and off-chain data can allow authorities and cybersecurity firms to spot suspicious patterns—such as unusual transaction volumes or rapid transfers between multiple wallets."
The AFP's recent actions highlight the growing intersection of law enforcement and cryptocurrency, as authorities adapt to the challenges posed by digital assets in organized crime. As investigations continue, the focus remains on dismantling networks that exploit technology for illegal activities, ensuring that the digital landscape remains secure for legitimate users.
