AFP Seizes $6.4M in Crypto Linked to Global Crime Syndicate

The Australian Federal Police (AFP) have confiscated $6.4 million in cryptocurrency linked to an international crime syndicate and executed a key arrest as part of the well-known Operation Kraken.

Crypto-related cybercrime poses a serious threat that continues to disrupt the industry, with malicious actors targeting uninformed criminals. This incident represents a significant effort against organized crime.

Operation Kraken Results in $6.4 Million Crypto Seizure

The AFP confiscated approximately $6.4 million or 9.3 million Australian dollars associated with the global crime network. They apprehended Jay Je Yoon Jung, the alleged mastermind behind the encrypted communication application that facilitates the criminal operation known as Ghost. Charged with five offenses, including aiding a criminal organization, the suspect could face up to 26 years behind bars.

This arrest followed the efforts of a Criminal Assets Confiscation Taskforce (CACT) analyst, who successfully deciphered the seed phrase from wallets found on Jung’s devices during a raid. The seed phrase holds the crucial information needed to access or recover cryptocurrency on the blockchain.

The AFP subsequently placed the seized funds into secure storage. The recovery is supported by the Commonwealth Proceeds of Crime Act 2002, which aims to dismantle criminal networks by confiscating their illegal assets. Reportedly, the recovered assets will be allocated to government initiatives for law enforcement funding.

Further Reading: 15 Common Crypto Scams to Watch Out For

This marks the second occasion in which the Australian Federal Police (AFP) has restrained assets in its investigation against the purported Ghost app developer and its users. In August, authorities previously seized $1.4 million (2 million Australian dollars) in cryptocurrencies and properties.

Operation Kraken has proven impactful, resulting in 46 arrests, the execution of 93 search warrants, and the confiscation of 30 illegal firearms. Additionally, officials have successfully intercepted more than 200 kilograms of illicit drugs from entering the Australian market, alongside seizing over $2.37 million in cash.

“Whether you have attempted to hide them in real estate, cryptocurrency, or cash, we will uncover your ill-gotten assets and remove them from you, leaving you with nothing,” stated AFP’s acting Commander Scott Raven said.

This incident highlights the ongoing struggle against cybercrime in the digital asset and wider financial sectors. As reported by BeInCrypto, instances of crypto attacks surged to $2.1 billion in 2024, with centralized finance (CeFi) taking the brunt of the losses.

Further Reading: A Comprehensive Guide to the Best AI Security Solutions in 2024

In just the third quarter, crypto-related losses due to security breaches reached $412 million. Noteworthy victims included Onyx Protocol and BingX exchange, among several others.