Australia seizes $6.4M in crypto linked to global crime

Australian Federal Police (AFP) seized $6.4 million in cryptocurrency as part of "Operation Kraken," a crackdown targeting organized crime syndicates using encrypted communication tools. 

The operation, which led to the arrest of 32-year-old suspect Jay Je Yoon Jung in New South Wales, also uncovered key evidence that enabled AFP analysts to crack the seed phrase of wallets found on devices during a raid on his home. 

Jung, accused of being the mastermind behind Ghost, an encrypted app used by crime networks, now faces multiple charges, including supporting a criminal organization. 

According to AFP, analysts successfully transferred the seized crypto assets into secure storage after decrypting the wallets. 

These assets were restrained under the Commonwealth Proceeds of Crime Act 2002, designed to target criminal networks by seizing illicit wealth. 

This seizure marks the second crypto-related asset freeze under Operation Kraken, following the restraint of assets linked to a syndicate in Western Australia earlier in the year. 

In total, Operation Kraken has led to 46 arrests, 93 search warrants, and the confiscation of 30 illegal firearms, according to AFP. 

Authorities have also prevented more than 200 kilograms of illicit drugs from entering the Australian market and seized over $1.6 million in cash. 

The Criminal Assets Confiscation Taskforce, led by AFP and pooling resources from agencies such as the Australian Taxation Office, AUSTRAC, and the Australian Border Force, has restrained more than $759 million in criminal assets since its inception in 2012.