Updated:2024-10-04 03:18 Views:92
" data-src="https://cryptoslate.com/wp-content/uploads/2024/09/brighty-news-position.jpg" alt="Receive, Manage & Grow Your Crypto Investments With Brighty" />The Australian Federal Police (AFP) Criminal Assets Confiscation Taskforce (CACT) has successfully seized approximately $6.4 million (9.3 million Australian dollars) in crypto.
According to an Oct. 2 statement, the authorities were able to secure the funds after identifying the seed phrase of a crypto account belonging to the unnamed creator of Ghost, an encrypted communication app utilized for illicit activities.
A seed phrase is a set of random words used to access or recover cryptocurrency. They are generated by crypto wallets and play a key role in safeguarding digital assets on these platforms.
AFP Acting Commander Scott Raven highlighted the significance of this operation, emphasizing that the $6.4 million seizure demonstrated the agency’s technical expertise in confronting criminal groups seeking to conceal illegal profits.
The agency’s expertise was, however, described using vague language in “deciphering” the seed phrase, alluding to the idea that it had ‘cracked’ the wallet. However, given the complexity and near-impossibility of genuinely cracking a seed phrase, it is likely the agency was able to pull the private key from a device linked to the wallet in question. While this methodology may have involved advanced techniques to examine either hardware or software, fears that a major crypto protocol has been ‘cracked’ by authorities are unfounded.
He added:
“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.”
Australian authorities crackdownMeanwhile, this seizure marks another milestone in the AFP’s investigation into organized crime, which targets the Ghost app’s creator and users under Operation Kraken. It follows an earlier seizure of $1.4 million in crypto and properties linked to the same app in August.
Notably, the crackdown by Australian authorities has had significant results. It has led to 46 arrests, 93 search warrants, and the seizure of 30 illegal firearms. Additionally, law enforcement has prevented more than 200 kilograms of illicit drugs from entering the Australian market and confiscated over $2.37 million in cash.
Meanwhile, Deddy Lavid, CEO of blockchain security firm Cyvers, told CryptoSlate that real-time monitoring of crypto wallets could further prevent criminals from consolidating or hiding their funds. Such proactive measures enhance law enforcement efforts and safeguard legitimate users by identifying threats before they escalate.
Lavid added:
“Real-time detection and analysis of on-chain and off-chain data can allow authorities and cybersecurity firms to spot suspicious patterns—such as unusual transaction volumesvvjl, rapid transfers between multiple wallets, or access from compromised devices—before assets are moved beyond reach.”