Australian feds cracked ‘seed phrase’ to access crypto account linked to global organized crime

The Australian Federal Police’s Criminal Assets Confiscation Taskforce cracked a “seed phrase” linked to an account belonging to alleged creator of encrypted messaging app “Ghost,” which authorities claim is used for organized crime.

According to the AFP press release, the Australian taskforce was able to extract $6.4 million USD from the suspect’s crypto account following analysis of digital devices recovered from the home of a man from New South Wales suspected of being the creator of “Ghost.”

Ghost is an encrypted communications platform that authorities claim is utilized for organized crime.

The AFP said it has restrained the crypto funds within the Ghost creator’s account under the Commonwealth Proceeds of Crime Act 2002 and will use the money to fund law enforcement initiatives.

After the funds are confiscated, they are then placed within the Confiscated Assets Account, which is managed by the Australian Financial Security Authority on behalf of the Commonwealth.

AFP acting Commander Scott Raven said in his statement that uncovering $6.4 million USD from the alleged Ghost maker’s account proves that AFP and CACT have the technical capabilities to face down organized crime groups trying to hide their illegal profits.

“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,” said Raven.

This discovery is the latest development in AFP’s investigation into organized crime linked to a syndicate involving the alleged Ghost app maker and its users, otherwise known as Operation Kraken.

This is the second time assets have been seized by Australian authorities against the Ghost app after $1.4 million in cryptocurrency and properties were taken in August.

So far, Operation Kraken has resulted in $11.09 million AUD or $8.2 million USD in assets restrained, 46 arrests, intervention in 50 threats to life or harm and prevention of more than 200kg of illicit drugs from entering Australia.

The suspect, aged 32, is allegedly the mastermind behind the organized crime syndicate built around the Ghost app. He was arrested on Sept. 17 and charged with five offenses, including supporting a criminal organization.