AFP Seizes $6.4M in Crypto Linked to Ghost Platform in Major Crime Bust

The Australian Federal Police (AFP) recently seized AU$9.3 million (US$6.4 million) in cryptocurrency as part of an investigation into Jay Je Yoon Jung, the alleged mastermind behind Ghost, an encrypted communication platform. Jung, 32, was arrested on September 17 during "Operation Kraken" and faces five charges, including supporting a criminal organization.

The "seed phrase" was deciphered by an analytics specialist within the AFP-led Criminal Assets Confiscation Taskforce (CACT) after analyzing digital devices recovered from the Narwee home. This analysis allowed the AFP to access the cryptocurrency and transfer it into secure storage.

Acting Commander Raven highlighted the AFP's commitment to targeting illicit assets like cryptocurrency, showcasing their technical expertise in fighting organized crime. “The restraint of these assets shows the technical capabilities and powers that the AFP, and our partners through the CACT, are able to bring to bear on organized crime,” Raven stated.

The seized assets fall under the Commonwealth Proceeds of Crime Act 2002, and the CACT plans to seek their forfeiture to the Commonwealth.

This is the second major seizure related to Operation Kraken, following the arrest of a Perth man last month, who held cryptos and properties valued at AU$2 million (US$1.3 million).

In addition, the AFP is tackling cryptocurrency-related scams through its global prevention campaign. In collaboration with blockchain analytics firm Chainalysis, the AFP identified that over 2,000 Australian crypto wallets were compromised by phishing scams.

These efforts, known as Operation Spincaster, aim to combat new "approval phishing" tactics used by cybercriminals through education, tools, and training. Australian cryptocurrency exchanges, including BTC Markets, Binance, and Crypto.com, are also working with law enforcement to help protect users from such scams.

The article was updated on Oct. 3, 2024 at 11:10 am UTC+4.