- The Australian Federal Police has successfully cracked a crypto wallet with holdings of up to AU $10m as part of Operation Kraken.
- The wallet belonged to Jay Je Yoon Jung, a Sydney man responsible for maintaining the criminal communications platform “Ghost”.
- Police managed to acquire Jung’s seed phrase via an analysis of his devices.
- The move comes as the AFP has arrested nearly 50 criminals associated with the messaging app.
The Australian Federal Police have finally released the Kraken following a multi-week effort to access the cryptocurrency wallet of alleged criminal Jay Je Yoon Jung.
The 32-year-old Sydneysider was arrested last month for his involvement in developing and hosting the criminal messaging network “Ghost”. After raiding his personal effects, the AFP became aware of a digital asset wallet used to fund various illegal activities – however, lacked the ability to break in.
But after an analysis of Je Yoon Jung’s belongings, authorities were able to access the seed phrase linked to his primary crypto wallet, uncovering nearly AU $10m worth of digital currencies.
Related: ASIC Sounds Alarm to Sceptical Crowd at Sydney Digital Asset Event
Ghost Network Facilitated Drug Deals, Firearm Exchange and Even Hits
Police believe much of the money held in the wallet came from operating the “Ghost” communication app, which was used to facilitate encrypted drug deals, and even murders.
Je Yoon Jung was reportedly selling “off-the-grid” smartphones that came with an automatic six-month subscription to Ghost, at $2,350 a pop. It was these very devices that allowed detectives to dismantle Ghost after they managed to break into the network and begin recording data.
For now, authorities plan to hand over the $10m worth of crypto to the Government as part of 2002’s Commonwealth Proceeds of Crime Act.
Nearly 50 Arrested, Millions in Crypto and Property Seized
Jung is not the first criminal to be apprehended as part of the police’s crackdown on the Ghost crime syndicate.
The AFP has reportedly made a whopping 46 arrests concerning the network’s usage, including the seizure of approximately $2m worth of crypto and property assets a few months ago.
According to authorities, the attack on the Ghost network has prevented up to 200kg worth of drugs from entering Aussie borders.
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