The Australian Federal Police has revealed it recently “deciphered” a seed phrase in order to access a suspect’s $6.4 million (9.3 million Australian dollars) in crypto as part of Operation Kraken.
The suspect is accused of being behind an encrypted messaging app called “Ghost,” which authorities claim is used by organized crime.
The AFP said on Oct. 2 that the crypto haul was restrained after a Criminal Assets Confiscation Taskforce (CACT) analyst “deciphered the account’s ‘seed phrase’ following analysis of digital devices” recovered from the home of Jay Je Yoon Jung, the alleged creator of the encrypted messaging app.
“This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage,” the agency said.
It added it would forfeit the crypto to the government “in due course,” which might later be used to fund law enforcement initiatives.
It’s the second time assets have been restrained in the AFP’s operation against the alleged Ghost app maker and its users — called Operation Kraken — with $1.4 million (2 million Australian dollars) in cryptocurrency and properties seized in August.
“Whether you have tried to hide them in real estate, cryptocurrency or cash, we will identify your ill-gotten goods and take them away from you, leaving you with nothing,” said AFP acting Commander Scott Raven.
The AFP did not respond to Cointelegraph’s questions about how it deciphered the seed phrase or what devices were recovered from Jung’s home, saying the matter is before the court.
Jung was arrested on Sept. 17 and charged with five offences, including supporting a criminal organization and faces a maximum of 26 years in jail.
Jung (left) being perp-walked after his arrest in Sydney. Source: AFP
The AFP claims Jung built Ghost solely for use by criminals, who used it to organize drug trafficking, money laundering and even contract killings, which the AFP claims to have prevented 50 threats to kill or harm.
Related: Hacker pleads guilty to stealing $37M in crypto via ‘cyber intrusion’
It alleged resellers offered a modified smartphone, which included six months of access to the messaging app and tech support for over $1,600 (2,350 Australian dollars)
Jung pushed out regular updates to Ghost, the AFP claims, but it said it was able to covertly infiltrate the software and effectively infect the modified phones to access their content.
The CACT is led by the AFP and brings together specialists — including crypto experts — from the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force.
Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story