Australian police break into a crypto wallet and seize $6.4 million by cracking the seed phrase

In Operation Kraken, the Australian Federal Police apprehended a significant suspect and seized $6.4 million in cryptocurrency that was associated with global crime.

The renowned Operation Kraken saw the Australia Federal Police (AFP) seize $6.4 million in crypto associated with a global criminal syndicate and make a significant arrest.

Crypto cybercrime is a persistent concern that has affected the industry, as malicious actors exploit unsuspecting criminals. This development represents a substantial stride in the fight against organized crime.

In connection with the global crime syndicate, the AFP confiscated up to $6.4 million or 9.3 million Australian dollars. The investigation resulted in the apprehension of Jay Je Yoon Jung, the suspected mastermind responsible for the encrypted communication app that empowered the criminal network Ghost. Accused of five offences, including supporting a criminal organization, the accused is subject to a maximum sentence of 26 years in prison.

The arrest was the result of a Criminal Assets Confiscation Taskforce (CACT) analyst’s successful decryption of the seed phrase from wallets found on Jung’s devices during a search. In order to access or retrieve funds from the blockchain, a seed phrase must comprise all the required information.

After that, the AFP transferred the stolen funds to a secure storage facility. Established to disrupt criminal networks by confiscating their illicit wealth, the Commonwealth Proceeds of Crime Act 2002 lends its support to this recovery. According to reports, the government will receive the recovery to support law enforcement initiatives.

The Australian Federal Police (AFP) has implemented asset restraint in its ongoing investigation of the purported Ghost app creator and its users for the second time. In August, authorities confiscated $1.4 million (2 million Australian dollars) in cryptocurrency and properties.

The Operation Kraken enforcement has had a substantial impact, resulting in the seizure of 30 illicit firearms, 46 arrests, and 93 search warrants. Furthermore, authorities have seized more than $2.37 million in cash and prevented the entry of more than 200 kilograms of illicit drugs into the Australian market.

Scott Raven, the interim Commander of the AFP, stated, “We will identify your ill-gotten assets and take them away from you, leaving you with nothing, whether you have attempted to conceal them in real estate, cryptocurrency, or cash.”

This development underscores the ongoing challenge of cybercrime in the digital asset and broader financial market. According to BeInCrypto, the value of crypto assaults increased to $2.1 billion in 2024, with the most significant impact on centralized finance (CeFi).

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