Ghost

Bitcoin

Silk Road

The Australian Federal Police said they recently “deciphered” a seed phrase to access a suspect’s $6.4 million (9.3 million Australian dollars) in crypto. 
The suspect is accused of being behind an encrypted messaging app called “Ghost,” which authorities claim is used by organized crime.
The AFP <a data-ct-non-breakable="null" href="https://www.afp.gov.au/news-centre/media-release/operation-kraken-afp-restrains-93-million-crypto-linked-alleged-head" rel="null" target="null" text="null" title="null">said</a> on Oct. 2 that the crypto was seized after a Criminal Assets Confiscation Taskforce (CACT) analyst “deciphered the account’s ‘seed phrase’ following analysis of digital devices” recovered from the home of Jay Je Yoon Jung, the alleged creator of the <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/telegram-vs-whatsapp-encryption-war" rel="null" target="null" text="null" title="null">encrypted messaging</a> app.
“This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage,” the agency said.
The AFP said it will transfer the crypto to the government “in due course,” and it may be used later to fund <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/blockchain-detectives-feds-crack-230m-crypto-heist" rel="null" target="null" text="null" title="null">law enforcement initiatives</a>.
It’s the second time assets have been seized in the AFP’s operation against the alleged Ghost app maker and its users — called Operation Kraken — after $1.4 million in cryptocurrency and properties were taken in August.
“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 AFP acting Commander Scott Raven.
The AFP did not respond to Cointelegraph’s questions about how it deciphered the <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/how-to-recover-a-crypto-wallet" rel="null" target="null" text="null" title="null">seed phrase</a> or what devices were recovered from Jung’s home, saying the matter is before the court.
Jung was arrested on Sept. 17 and charged with five offenses, including supporting a criminal organization. He faces a maximum of 26 years in jail.
<figure>
 <img alt="Australian feds ’deciphered' seed phrase to access suspect’s crypto" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924bbf-a699-70d0-86ab-2cb3de4c3c5a">
 <figcaption style="text-align: center;">
 Jung (left) being perp-walked after his arrest in Sydney. Source: AFP
 </figcaption>
</figure>
The AFP said Jung built Ghost solely for <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/telegram-policy-shift-privacy-concerns" rel="null" target="null" text="null" title="null">use by criminals</a>, who utilized it to organize drug trafficking, money laundering and even contract killings.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hacker-stole-37-million-crypto-pleads-guilty-fraud" rel="null" target="null" text="null" title="null">Hacker pleads guilty to stealing $37M in crypto via ‘cyber intrusion’</a>
Resellers sold a modified smartphone with six months of access to the messaging app and tech support for about $1,600, the AFP said.
Jung pushed out regular updates to Ghost, the agency said, adding that it was able to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-firms-engineers-code-malicious-actors-exodus-ceo-token2049" rel="null" target="null" text="null" title="null">covertly infiltrate</a> the software and infect the modified phones to access their content.
The CACT is led by the AFP and brings together specialists — including crypto experts — from the Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/3-4-billion-bitcoin-popcorn-tin-silk-road-hacker/" rel="null" target="null" text="null" title="null">$3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story</a>

Australian feds ’deciphered' seed phrase to access suspect’s crypto

Cointelegraph

Other articles published on Oct 2, 2024

80% of Crypto Startups from 2022 Still Operational- Report

Fidelity Ethereum ETF records largest daily outflows since launch

Degen Trump Solana Memecoin Will Explode 19,000% Before Exchange Listing, As Shiba Inu and Dogeco...

Kraken Expands European Reach with Acquisition of Dutch Crypto Broker BCM

Dogwifhat (WIF) Price Prediction for Today, October 2 – WIF Technical Analysis

OpenAI’s new updates enhance voice and vision capabilities of AI

Join our free newsletter for daily crypto updates!