- An AFP data scientist recovered US$5.9 million (AU$9.0 million) in cryptocurrency from a digital wallet linked to organised crime.
- Investigators uncovered the wallet’s recovery phrase by decoding a hidden pattern in a suspect’s phone data.
- The seized funds may be forfeited to the Commonwealth to support national crime prevention programs
An Australian Federal Police (AFP) data scientist has cracked a digital wallet containing US$5.9 million (AU$9.0 million) in cryptocurrency linked to organised crime, earning the nickname “crypto safe cracker” within the agency.
The find came during an AFP investigation into a man accused of selling encrypted communications technology to criminal groups worldwide. During a search of the suspect’s Sydney home, investigators uncovered an image on his mobile phone containing dozens of numbers and word sequences arranged in six-character patterns.
After the suspect refused to hand over his wallet credentials, an offence that carries a penalty of up to ten years in prison, the AFP’s digital forensics team took over the investigation. One analyst noticed that the code didn’t follow the logic of a machine-generated sequence. By removing the first digit from each group of numbers, they uncovered a hidden 24-word recovery phrase that unlocked the multimillion-dollar crypto wallet.
It was the analyst’s second major success. In an earlier case, they used a separate technique to recover around US$3 million (AU$4.6 million) from another encrypted wallet.
AFP Commissioner Krissy Barrett praised the discovery, saying it showcased the “ingenuity and persistence” of the agency’s forensic experts.
To me this highlights that while computer power is essential, it [is] not always as creative and innovative as a human.
Krissy Barrett, AFP CommissionerRelated: Report: North Korea Has Stolen Nearly $3B in Crypto So Far This Year
Securing the Digital Assets
The seized cryptocurrency has been secured by the AFP-led Criminal Assets Confiscation Taskforce. If the court orders forfeiture, the funds will be converted and transferred to a Commonwealth account to support national crime prevention programs overseen by Home Affairs Minister Tony Burke.
The case underscores the AFP’s growing capability in digital forensics – and its determination to ensure criminals can’t hide their profits behind encryption.
Related: Australia’s Crypto Sector Welcomes New Rules, but Pushes for Clearer Guidance
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