The Australian Federal Police’s Criminal Assets Confiscation Taskforce (CACT) recently cracked a “seed phrase” linked to an account belonging to the alleged creator of the encrypted messaging app “Ghost.” Authorities claim this app is used for organized crime.

Significant Cryptocurrency Seizure

The taskforce extracted $6.4 million USD from the suspect’s crypto account. This followed an analysis of digital devices recovered from a residence in New South Wales, suspected to be the home of the Ghost app creator. Ghost, an encrypted communications platform, is alleged to be utilized for organized crime activities.

Legal Framework and Fund Allocation

The Australian Federal Police (AFP) confirmed that the crypto funds have been restrained under the Commonwealth Proceeds of Crime Act 2002. The money will be used to support law enforcement initiatives. Once confiscated, these funds are placed within the Confiscated Assets Account, managed by the Australian Financial Security Authority on behalf of the Commonwealth.

Law Enforcement Capabilities

AFP acting Commander Scott Raven stated that the discovery of $6.4 million USD from the alleged Ghost maker’s account demonstrates AFP and CACT’s technical capabilities to combat organized crime groups attempting to conceal 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.

Operation Kraken

This discovery is part of the ongoing AFP investigation into organized crime linked to a syndicate involving the alleged Ghost app maker and its users, known as Operation Kraken. This marks the second instance of asset seizure tied to the Ghost app, following the confiscation of $1.4 million in cryptocurrency and properties in August.

To date, Operation Kraken has resulted in the restraint of $11.09 million AUD (approximately $8.2 million USD) in assets, 46 arrests, intervention in 50 threats to life or harm, and the prevention of more than 200kg of illicit drugs from entering Australia.

The 32-year-old suspect, believed to be the mastermind behind the organized crime syndicate centered around the Ghost app, was arrested on September 17 and charged with five offenses, including supporting a criminal organization.

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