Crypto News - Australian Federal Police Seize $6.4 Million in Major Operation

Crypto Cybercrime Crackdown

The Australia Federal Police (AFP) seized $6.4 million in crypto linked to a global crime syndicate and made a significant arrest as part of the renowned Operation Kraken.

Operation Kraken Leads to Major Seizure

The AFP seized up to $6.4 million or 9.3 million Australian dollars linked to the global crime syndicate. It arrested Jay Je Yoon Jung, the suspected mastermind behind the encrypted communication app enabling the criminal network Ghost. Charged with five offenses, including supporting a criminal organization, the accused faces a maximum of 26 years in jail.

Cracking the Code

The arrest followed the success of a Criminal Assets Confiscation Taskforce (CACT) analyst in cracking the seed phrase from wallets discovered on Jung's devices during a raid. A seed phrase is critical for accessing or recovering funds on the blockchain. The AFP then moved the looted funds into secure storage.

Legal Framework

The Commonwealth Proceeds of Crime Act 2002 supports this recovery, established to disrupt criminal networks by confiscating their illicit wealth. Reportedly, the recovery will go to the government to fund law enforcement initiatives.

Significant Impact of Operation Kraken

This marks the second instance of asset restraint by the Australian Federal Police (AFP) in its operation against the alleged Ghost app maker and its users. Previously, in August, authorities seized $1.4 million (2 million Australian dollars) in cryptocurrency and properties.

Operation Kraken has led to 46 arrests, 93 search warrants, and the seizure of 30 illegal firearms. Additionally, authorities have prevented over 200 kilograms of illicit drugs from entering the Australian market and seized more than $2.37 million in cash.