The Australian Federal Police said Tuesday it has seized $6.4 million in crypto as part of an investigation targeting the alleged mastermind behind Ghost, an encrypted communication app used by organized crime syndicates.
The 32-year-old suspect, Jay Je Yoon Jung, from New South Wales, was arrested on Sept. 17 under “Operation Kraken” and now faces multiple charges, including supporting a criminal organization.
The seizure was made possible after AFP analysts cracked the seed phrase from wallets retrieved from Jung’s devices found during a raid on the suspect’s home, according to a statement from the police.
Crypto criminals are increasingly shifting their focus to centralized exchanges, with over $1.5 billion stolen in the first half of the year, according to a mid-year report by blockchain analysis firm Chainalysis.
It’s a notable departure from the previous four years when decentralized platforms were the primary targets.
This allowed the AFP to transfer the funds into secure storage, the authorities said. The assets were restrained under the Commonwealth Proceeds of Crime Act 2002, designed to disrupt criminal networks by seizing their illicit wealth.
It marks the second crypto-related asset freeze under Operation Kraken, following the restraint of assets linked to a syndicate in Western Australia earlier this year. The operation’s name has no affiliation with the popular crypto exchange.
Operation Kraken has so far resulted in 46 arrests, 93 search warrants, and the seizure of 30 illegal firearms, per the statement.
Authorities have also prevented more than 200 kilograms of illicit drugs from entering the Australian market and seized over $2.37 million in cash.
The AFP-led Criminal Assets Confiscation Taskforce, which spearheads the operation, pools resources from agencies, including the Australian Taxation Office, AUSTRAC, and the Australian Border Force.
Since its creation in 2012, the task force has restrained more than $1.1 billion in criminal assets.
As investigations continue, the AFP is expected to seek the permanent forfeiture of the seized crypto in a bid to cripple the financial networks of organized crime syndicates operating in Australia and beyond, authorities said.
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