Australian Federal Police (AFP) seized AU$9.3 million ($6.4 million) in cryptocurrency during an investigation into the mastermind behind the encrypted messaging platform Ghost, which was used by organized crime groups. The operation, dubbed “Operation Kraken,” targeted illicit activities coordinated via the platform.
Details of the Seizure
The suspect, a 32-year-old man based in Sydney, was arrested in September 2024. Authorities gained access to the cryptocurrency by deciphering seed phrases found on hardware wallet devices at his home. These seed phrases are critical for accessing and recovering cryptocurrency stored in wallets, and the AFP’s ability to crack them highlights the increasing sophistication of law enforcement in dealing with crypto-related crimes.
Ghost was an encrypted messaging service favored by criminal organizations for activities such as drug trafficking and money laundering. The platform, which offered self-destructing messages and advanced encryption, was taken down in a coordinated effort by Europol and other global law enforcement agencies.
Broader Impact of Operation Kraken
Since its launch in 2022, Operation Kraken has led to 46 arrests and the seizure of over AU$11 million ($7.6 million) in assets, including AU$2.37 million ($1.6 million) in cash. The AFP’s ability to confiscate cryptocurrency, traditionally seen as a difficult asset to seize, marks a significant development in the fight against organized crime.
The seized assets are expected to be forfeited to the Commonwealth, where they will be used to fund crime prevention programs in Australia.
Source: The Block
