The Australian Federal Police (AFP) have successfully executed Operation Kraken, seizing 9.3 million Australian dollars (approximately $6.4 million) from an alleged mastermind behind the encrypted messaging service Ghost. This platform was utilized by organized crime groups for activities like drug trafficking and money laundering, featuring advanced encryption and self-destructing messages.
Ghost was dismantled last month following a two-year investigation led by Europol and coordinated with global law enforcement agencies, including the AFP. The suspect, a 32-year-old man from Narwee, a suburb of Sydney, was arrested on September 17 during the operation and has been charged with five offenses, including supporting a criminal organization.
According to the AFP, the cryptocurrency assets were confiscated after specialists from the Criminal Assets Confiscation Taskforce (CACT) managed to decipher the suspect’s seed phrases from hardware wallet devices found in his residence. This allowed the AFP to access the cryptocurrency and transfer it to secure storage.
This latest seizure marks the second significant recovery of cryptocurrencies under Operation Kraken, which previously restrained 2 million AUD (about $1.4 million) linked to a Western Australia crime syndicate in August.
While crypto hardware wallets are generally considered safe for storing digital currencies due to their offline private keys, physical access by skilled individuals can lead to the extraction of seed phrases, critical for accessing funds.
AFP Acting Commander Scott Raven stated, “The restraint of these assets demonstrates our technical capabilities against organized crime. Whether hidden in real estate, cryptocurrency, or cash, we will identify and confiscate your ill-gotten gains.”
Since its inception in 2022, Operation Kraken has resulted in 46 arrests, 93 search warrants, and intervention in 50 life-threatening situations. The operation has seized 2.37 million AUD (approximately $1.6 million) in cash and 11.09 million AUD (around $7.6 million) in other assets.
The CACT, which includes the AFP, Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC, and Australian Border Force, plans to seek forfeiture of the restrained assets to the Commonwealth, managed by the Australian Financial Security Authority for the benefit of crime prevention programs.
