Lawrence Damilola
The Australian Federal Police (AFP) seized $6.4 million (approx. A$9.3 million) in cryptocurrency from Jay Je Yoon Jung, the creator of the encrypted Ghost network.
Authorities claim organized crime groups used the app for illegal activities, including drug trafficking and money laundering. The AFP stated today that its Criminal Assets Confiscation Taskforce (CACT) could access the cryptocurrency by deciphering the account’s seed phrase.
The seed phrase was reportedly found by analyzing digital devices recovered during a raid at Jung’s residence. The police explained, “This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage.”
Jung was arrested on Sept. 17 and has been charged with five offenses, including supporting a criminal organization. According to the AFP, he faces up to 26 years in prison. The AFP also claims that Jung created Ghost solely for criminal use, with criminals allegedly utilizing the app for various illegal activities such as money laundering and contract killings.
Operation Kraken Leads to Second Crypto Seizure
The seizure is part of Operation Kraken, an ongoing AFP operation targeting the Ghost app and its users. During the operation, the AFP had previously seized $1.4 million in cryptocurrency and properties in August. Acting Commander Scott Raven emphasized the police’s determination to confiscate illegal assets: “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.”
The AFP has not disclosed how the seed phrase was deciphered, citing the pending legal case. Jung remains in custody as the investigation continues.
The AFP noted that the seized cryptocurrency would be transferred to the Australian government “in due course.” According to the agency, the funds could support future law enforcement efforts. The confiscated assets are being held under the Commonwealth Proceeds of Crime Act 2002 and will be managed by the Australian Financial Security Authority on behalf of the Commonwealth.
Read More
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- Australia Becomes Third-Largest Market for Crypto ATMs Amid Money Laundering Concerns
- Australia Becomes Third-Largest Market for Crypto ATMs Amid Money Laundering Concerns
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
