Australian Federal Police Seize $6.4 Million in Cryptocurrency Linked to Organized Crime in Operation Kraken

The Australian Federal Police (AFP) recently announced a significant seizure of $6.4 million in cryptocurrency. This action is part of an investigation into the alleged mastermind behind Ghost, an encrypted communication app used by organized crime groups.

The suspect, 32-year-old Jay Je Yoon Jung from New South Wales, was arrested on September 17 during what’s called “Operation Kraken.” He now faces multiple charges, including supporting a criminal organization.

How did the AFP manage to seize these funds? Analysts cracked the seed phrase linked to digital wallets found on Jung’s devices during a raid at his home. This breakthrough allowed the AFP to securely transfer the funds into safe storage. The assets were seized under the Commonwealth Proceeds of Crime Act 2002, which aims to disrupt criminal networks by taking away their illegal wealth.

This marks the second time crypto-related assets have been frozen under Operation Kraken. Earlier this year, authorities also seized assets linked to a syndicate in Western Australia. It’s important to note that the operation's name has no connection to any well-known cryptocurrency exchange.

So far, Operation Kraken has resulted in 46 arrests, 93 search warrants executed, and the confiscation of 30 illegal firearms. Additionally, authorities have prevented over 200 kilograms of illegal drugs from entering the Australian market and seized more than $1.6 million in cash.

The AFP leads the Criminal Assets Confiscation Taskforce, which collaborates with various agencies, including the Australian Taxation Office, AUSTRAC, and the Australian Border Force. Since its formation in 2012, this task force has restrained over $759 million in criminal assets.

As investigations continue, the AFP plans to seek permanent forfeiture of the seized cryptocurrency. This step aims to cripple the financial networks of organized crime syndicates operating in Australia and beyond.

In other news, House Majority Whip Tom Emmer (R-MN), a strong advocate for cryptocurrency in Congress, shared his plans for the industry. He believes that if Republicans gain control of all federal branches in November, there will be significant movement in digital asset legislation. However, he also thinks that regulation is coming, regardless of the election outcome. “Regardless of the outcome, I expect you to see digital asset legislation start to move in both bodies,” he stated.

Additionally, hip-hop artist Sean “Diddy” Combs is making headlines. He’s reportedly sharing a prison unit with crypto criminal Sam Bankman-Fried. Court filings show that Combs has hired one of Bankman-Fried’s lawyers, Alexandra Shapiro, as he seeks to appeal his current imprisonment. He was arrested last month on serious charges, including racketeering conspiracy and sex trafficking.

Lastly, according to Chainalysis, Russia has ramped up its use of cryptocurrency for evading sanctions, spreading disinformation, and interfering in elections. Chainalysis Chief Marketing Officer Ian Andrews pointed out that Russia has become a major player in using cryptocurrency for various illicit activities. This includes sanctions evasion and ransomware attacks, as well as interference in U.S. elections.