The Australia Federal Police (AFP) seized $6.4 million in crypto linked to a global crime syndicate and made a significant arrest as part of the renowned Operation Kraken.
Crypto cybercrime is a concerning issue that continues to plague the industry, as bad actors prey on unsuspecting criminals. This development marks a significant move against organized crime.
Operation Kraken Leads to $6.4 Million Crypto Haul
The AFP seized up to $6.4 million or 9.3 million Australian dollars linked to the global crime syndicate. It arrested Jay Je Yoon Jung, the suspected mastermind behind the encrypted communication app enabling the criminal network Ghost. Charged with five offenses, including supporting a criminal organization, the accused faces a maximum of 26 years in jail.
The arrest followed the success of a Criminal Assets Confiscation Taskforce (CACT) analyst in cracking the seed phrase from wallets discovered on Jung’s devices during a raid. A seed phrase contains all the necessary information to access or recover funds on the blockchain.
The AFP then moved the looted funds into secure storage. The Commonwealth Proceeds of Crime Act 2002 supports this recovery, established to disrupt criminal networks by confiscating their illicit wealth. Reportedly, the recovery will go to the government to fund law enforcement initiatives.
Read more: 15 Most Common Crypto Scams To Look Out For
his marks the second instance of asset restraint by the Australian Federal Police (AFP) in its operation against the alleged Ghost app maker and its users. Previously, in August, authorities seized $1.4 million (2 million Australian dollars) in cryptocurrency and properties.
The crackdown, known as Operation Kraken, has had a significant impact, leading to 46 arrests, 93 search warrants, and the seizure of 30 illegal firearms. Additionally, authorities have prevented over 200 kilograms of illicit drugs from entering the Australian market and seized more than $2.37 million in cash.
“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,” AFP’s acting Commander Scott Raven said.
This development indicates how cybercrime remains a challenge in the digital asset and broader financial market. As BeInCrypto reported, crypto attacks surged to $2.1 billion in 2024, with centralized finance (CeFi) taking the biggest hit.
Read more: A Guide to the Best AI Security Solutions in 2024
In the third quarter alone, crypto losses due to exploitation reached $412 million. Notable victims include Onyx Protocol and BingX exchange, among others.
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Lockridge Okoth
https://beincrypto.com/australian-police-crack-seed-phrase/
2024-10-02 08:18:53
