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02/10/24
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AFP Seizes $6.4 Million in Crypto from Alleged Organized Crime App Developer
The Australian Federal Police (AFP) has successfully accessed $6.4 million in cryptocurrency as part of a major investigation known as Operation Kraken. This operation targets a suspect believed to be the mastermind behind “Ghost,” a messaging app purportedly utilized by organized crime syndicates. The substantial cryptocurrency recovery follows the deciphering of a seed phrase linked to the suspect’s digital assets, which was achieved through meticulous analysis of recovered devices.
On October 2, the AFP revealed that investigators from the Criminal Assets Confiscation Taskforce (CACT) had deciphered the seed phrase from devices found at the residence of Jay Je Yoon Jung, the alleged creator of the Ghost app. This breakthrough allowed the authorities to secure the cryptocurrency, which is now slated for storage under AFP supervision. The agency indicated that it intends to forfeit the seized assets to the government, which could subsequently allocate the funds for law enforcement purposes.
This latest development marks the second significant asset restraint in the ongoing operation against individuals associated with the Ghost app. In August, authorities seized approximately $1.4 million in cryptocurrency and other properties from the suspected network. Officials emphasized their commitment to tracking down ill-gotten gains, regardless of whether these assets are concealed in assets such as real estate, cash, or digital currencies.
Jung was apprehended on September 17 and is facing multiple charges, including supporting a criminal organization. Prosecutors assert that he developed Ghost specifically to facilitate criminal activities, including drug trafficking and money laundering, and that it may have been implicated in contract killings. The allegations include efforts to thwart an estimated 50 incipient threats against individuals.
Notably, authorities suggest that resellers of modified smartphones included access to the Ghost app and ongoing technical support, which were sold at steep prices. Throughout the investigation, the CACT, led by the AFP, has integrated expertise from various federal agencies to combat this sophisticated form of crime effectively.
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