Australian Federal Police Decrypt Crypto Wallet in Messaging App Investigation

TLDR

• Australian Federal Police (AFP) decrypted a seed phrase to access $6.4 million in crypto
• Suspect Jay Je Yoon Jung allegedly created encrypted messaging app “Ghost” for organized crime
• Jung was arrested and charged with five offenses, facing up to 26 years in jail
• Operation Kraken seized $1.4 million in crypto and properties in August
• AFP infiltrated the Ghost app to access content on modified phones

The Australian Federal Police (AFP) recently made headlines by decrypting a seed phrase to access $6.4 million in cryptocurrency.

This breakthrough came as part of an ongoing investigation into an encrypted messaging app allegedly designed for use by organized crime groups.

On October 2, 2023, the AFP announced that they had successfully accessed a crypto account belonging to Jay Je Yoon Jung, the suspected creator of an encrypted messaging app called “Ghost.”

The operation, codenamed Kraken, involved a Criminal Assets Confiscation Taskforce (CACT) analyst who managed to decipher the account’s seed phrase after examining digital devices seized from Jung’s home.

Jung was arrested on September 17 and charged with five offenses, including supporting a criminal organization. If convicted, he could face up to 26 years in prison.

The AFP claims that Jung developed Ghost specifically for criminal use, facilitating activities such as drug trafficking, money laundering, and even contract killings.

The Ghost app was reportedly sold on modified smartphones, with a six-month access package and tech support costing around $1,600. The AFP stated that Jung regularly updated the software to maintain its effectiveness for criminal users.

In a significant breakthrough, the AFP revealed that they had managed to covertly infiltrate the Ghost software. This allowed them to infect the modified phones and access their content, providing valuable intelligence for law enforcement efforts.

The recent crypto seizure marks the second major asset confiscation in Operation Kraken. In August, authorities had already seized $1.4 million in cryptocurrency and properties linked to the case.

AFP acting Commander Scott Raven emphasized the agency’s commitment to identifying and confiscating ill-gotten gains, regardless of how criminals attempt to hide them.

The CACT, which led this operation, is a multi-agency taskforce headed by the AFP. It brings together specialists from various government bodies, including crypto experts from the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC, and Australian Border Force.

The AFP plans to transfer the seized cryptocurrency to the government “in due course.” They indicated that these funds might be used to support future law enforcement initiatives, effectively turning the proceeds of crime into resources for combating it.

This case highlights the growing sophistication of both cybercriminals and law enforcement in the digital age. While encrypted messaging apps and cryptocurrencies can offer privacy and financial freedom, they can also be exploited for illegal activities.

The AFP’s success in cracking the seed phrase demonstrates the evolving capabilities of law enforcement in dealing with digital assets and encrypted communications.