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The Australian Federal Police (AFP) recently achieved a major breakthrough in their operation against the alleged creator of an encrypted crypto scam messaging app, Ghost. The AFP claimed that organized crime groups used this app.
Decoding the Seed Phrase to Access Millions
Jay Je Yoon Jung, the alleged mastermind behind the Ghost app, was arrested on September 17 and charged with five criminal offenses, including supporting a criminal organization. If convicted, he will face up to 26 years in prison. The AFP claimed that Jung developed Ghost with the sole purpose of enabling criminals to coordinate illegal activities.
Earlier today, the AFP revealed that a Criminal Assets Confiscation Taskforce (CACT) analyst had successfully deciphered the seed phrase of a crypto account. This seed phrase is a string of words that provides access to a crypto wallet. The breakthrough came after analysts conducted a forensic analysis on digital devices recovered from Jung’s residence.
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After cracking the wallet, the seized digital assets recovered were estimated to be valued at $6.4 million. The police then transferred the recovered digital assets to AFP’s cryptocurrency storage.
The police said that the seized crypto assets will be handed over to the Australian government in due course. These recovered assets could be used to fund future law enforcement operations. This marks a pivotal milestone in the crypto industry. It comes when crimes are heightened and crypto losses are accumulating.
Taskforce Collaboration
The Criminal Assets Confiscation Taskforce (CACT), a specialized unit led by the AFP was also responsible for seizing Jung’s cryptocurrency. The task force brought together experts from various agencies.
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This includes the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC, and Australian Border Force. This collaboration, including the involvement of crypto specialists, has proven essential in the ongoing crackdown against organized crime facilitated by the Ghost app.
Operation Kraken: Seizing Crypto scam Criminal’s Assets
AFP’s action is part of its Operation Kraken, a larger operation targeting the Ghost app and its users. In August, authorities seized $1.4 million in crypto assets and property in connection with the same investigation.
The Ghost app was allegedly designed and built specifically for criminal activities. In addition, users employed the app for drug trafficking, money laundering, and even contract killings. In a press statement, AFP Acting Commander Scott Raven emphasized the agency’s dedication to stripping criminals of their ill-gotten gains.
This crackdown shows that regulatory agencies, including crypto exchanges, awakened. They are taking necessary security measures to combat illicit activities in the industry.
Ironically, this operation crackdown coincided with the Australian Securities and Investments Commission’s (ASIC) lawsuit against Kraken Exchange. The regulatory agency claimed the trading platform inappropriately offered magic extension products to Australian retail investors.
