Australia’s “Operation Kraken” seizes over $6 million in crypto from alleged Ghost mastermind

• The AFP arrests a 32-year-old man throughout a raid at his house in New South Wales
• Seizing the crypto was made attainable after the AFP cracked the suspect’s seed phrase
• The arrest marks the second beneath Operation Kraken

The Australian Federal Police (AFP) has seized $6.4 million in crypto from the alleged mastermind behind Ghost, an encrypted communication platform utilized by criminals, for creating and administrating the app.

Beneath Operation Kraken, a 32-year-old man from New South Wales was arrested on September 17, and charged with 5 offenses, together with supporting a legal group, in line with an AFP assertion.

The success of this operation was made attainable after an AFP analytics specialist uncovered the account’s seed phrase belonging to the suspect’s digital wallets from units throughout a raid at his Narwee house.

In accordance with the AFP, they moved the belongings to a safe AFP cryptocurrency storage the place it was restrained beneath the Commonwealth Proceeds of Crime Act 2002.

This marks the second crypto asset seizure beneath Operation Kraken after crypto and property value almost $1.4 million had been seized as a part of an investigation into an alleged legal syndicate in Western Australia.

“The restraint of those belongings reveals the technical capabilities and powers that the AFP, and our companions via the CACT (Legal Belongings Confiscation Taskforce), are in a position to convey to bear on organized crime,” mentioned performing Commander Scott Raven.

To this point, Operation Kraken has made 46 arrests, performed 93 search warrants, seized 30 illicit firearms, seized $1.6 million in money, and restrained $7.65 million in belongings.

Cracking down on Ghost

In accordance with the AFP, Ghost was created 9 years in the past; nevertheless, it was solely in 2022 that the chance for regulation enforcement to focus on the platform arose.

The necessity to crackdown on the communication platform is highlighted by the variety of organizations concerned. In 2022, worldwide companions started concentrating on Ghost and requested AFP to be a part of its activity power.

Europol created a activity power referred to as OTF NEXT, which was led by the FBI and the French Gendarmerie. Beneath these two organizations, these aiding included the AFP, the Royal Canadian Mounted Police (RCMP), the Swedish Police Authority, the Dutch Nationwide Police, the Irish Garda Síochána, and the Italian Central Directorate for Anti-Drug Service. The Icelandic Police additionally helped.

Whereas working throughout the activity, the AFP created Operation Kraken after they had been in a position infiltrate Ghost. After modifying the updates the suspect launched, which contaminated units, the AFP was in a position to entry the content material on these units in Australia.

In accordance with the AFP, a lot of the alleged offenders who used Ghost are in New South Wales; nevertheless, they had been additionally present in Victoria, Western Australia, South Australia, and the Australian Capital Territory (ACT).