The Australian Federal Police (AFP) has made a significant breakthrough in the fight against crypto cybercrime, seizing $6.4 million linked to a global crime syndicate as part of Operation Kraken. This operation not only led to a major arrest but also highlights the persistent issue of bad actors exploiting the digital currency space.
The AFP seized up to $6.4 million (or 9.3 million Australian dollars) in cryptocurrency connected to a notorious global crime syndicate. The authorities arrested Jay Je Yoon Jung, believed to be the mastermind behind the encrypted communication application facilitating the criminal network known as Ghost. Charged with five offenses, including supporting a criminal organization, Jung faces a potential maximum sentence of 26 years in prison.
The arrest was made possible by a Criminal Assets Confiscation Taskforce (CACT) analyst who successfully cracked the seed phrase from crypto wallets found on Jung's devices during a raid. The seed phrase is crucial as it allows access to funds on the blockchain.
Following the seizure, the AFP transferred the confiscated funds into secure storage, supported by the Commonwealth Proceeds of Crime Act 2002. This act aims to disrupt criminal networks by confiscating their assets. The recovered funds are expected to be allocated to government initiatives to enhance law enforcement capabilities.
This recent seizure marks the second instance of asset restraint by the AFP against the alleged Ghost app creator and its users. In August, authorities had already seized $1.4 million (2 million Australian dollars) in cryptocurrency and properties as part of the same operation.
Operation Kraken has shown significant results, leading to 46 arrests, 93 search warrants, and the confiscation of 30 illegal firearms. Authorities have also successfully prevented over 200 kilograms of illicit drugs from entering the Australian market and seized more than $2.37 million in cash.
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