In a major breakthrough in the fight against organized crime, the Australian Federal Police (AFP) have confiscated 9.3 million Australian dollars ($6.4 million) from the alleged mastermind behind ‘Ghost,’ an encrypted messaging platform that was used by criminal syndicates to facilitate illegal activities, including drug trafficking and money laundering. The arrest marks a significant milestone in a two-year investigation coordinated by Europol and global law enforcement agencies, culminating in the platform’s takedown last month.
The alleged perpetrator, a 32-year-old man from Narwee, a suburb of Sydney, was apprehended on September 17 as part of the AFP’s “Operation Kraken.” He now faces five charges, including supporting a criminal organization, according to AFP reports.
‘Ghost’ – A Hub For Organized Crime
The platform in question, ‘Ghost,’ offered advanced encryption and self-destructing messages, making it a preferred tool for organized crime groups to avoid detection while conducting illegal transactions. The platform’s promise of secure, encrypted communication attracted criminal enterprises, but its downfall was inevitable as global law enforcement ramped up efforts to combat the growing threat posed by such technologies.
AFP-led authorities cracked the case when the Criminal Assets Confiscation Taskforce (CACT) decrypted seed phrases from hardware wallets found at the suspect’s home, giving them access to his cryptocurrency holdings. According to the AFP, the seized digital assets have since been transferred to secure storage.
This isn’t the first time Operation Kraken has hit criminal cryptocurrency stashes. In August, authorities confiscated 2 million AUD ($1.4 million) in assets linked to a Western Australian crime syndicate. The AFP’s ability to recover digital assets demonstrates the growing expertise of law enforcement in navigating the world of cryptocurrency and blockchain.
Crypto Wallets: Not as Secure as Believed?
Cryptocurrency hardware wallets, which store private keys offline, are generally regarded as one of the safest methods for safeguarding digital assets. However, the AFP’s breakthrough in this case underscores a potential vulnerability: if someone gains physical access to a hardware wallet, they may be able to extract or decipher the seed phrases required to unlock the funds.
“The restraint of these assets shows the technical capabilities and powers that the AFP, and our partners through the CACT, are able to bring to bear on organized crime,” said AFP acting Commander Scott Raven. “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.”
Operation Kraken: Striking at Organized Crime
Launched in 2022, Operation Kraken has been highly effective in targeting organized crime syndicates. To date, it has led to 46 arrests, 93 search warrants, and the interception of 50 threats to life or harm. Additionally, authorities have seized 2.37 million AUD ($1.6 million) in cash and 11.09 million AUD ($7.6 million) in assets, including the most recent cryptocurrency haul.
Also Read: Cryptocurrency Theft – Australian Authorities Battle $162M Loss, 2K+ Wallets Hacked
The taskforce behind these efforts includes the AFP, Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC, and Australian Border Force. The restrained assets are expected to be forfeited to the Commonwealth, with the proceeds used to fund crime prevention programs in Australia.
The fall of ‘Ghost’ and the arrest of its alleged mastermind sends a clear message: no matter how secure criminals believe their operations are, law enforcement is evolving with the technology and closing in on those who attempt to profit from illicit activities.
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