Australian Federal Police announced on Tuesday that $6.4 million in crypto was seized as part of an investigation targeting the mastermind behind Ghost, an encrypted communications app used by an organized crime syndicate.
Suspect Jay Jae Yoon Jung, 32, from New South Wales was arrested on September 17 under “Operation Kraken” and now faces multiple charges, including supporting a criminal organization.
The arrest was made possible after AFP analysts cracked the genealogy of digital wallets from Jung's devices, he said. press release from the police.
This allowed the AFP to transfer the money to a safe deposit box, the officials said. The assets were frozen under the Commonwealth Criminal Procedure Act 2002, designed to disrupt criminal networks by seizing their illicit wealth.
It marks the second crypto-related asset freeze under Operation Kraken, following the seizure of syndicate-linked assets in Western Australia earlier this year. The code name of the operation has nothing to do with the popular crypto exchange.
Operation Kraken has so far resulted in 46 arrests, 93 search warrants and 30 illegal firearms seizures, according to the statement.
Authorities say more than 200 kilograms of illegal drugs have been prevented from entering the Australian market and more than $1.6 million in cash has been seized.
The operation will be led by the AFP-led Criminal Asset Seizure Taskforce, which will pool resources from agencies including the Australian Taxation Office, AUSTRAC and the Australian Border Force.
In the year Since its inception in 2012, the task force has confiscated more than $759 million in criminal assets.
As investigations continue, the AFP is expected to seek the permanent destruction of the seized crypto to undermine the financial networks of organized crime syndicates operating in Australia and beyond, officials said.
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