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Cryptocurrency worth almost $10m has been restrained after police cracked an alleged criminal communication network.
Almost $10m in cryptocurrency has been seized from a man accused of masterminding an encrypted messaging network used to plan drug deals and murders.
Jay Je Yoon Jung, 32, was arrested at his parents’ Sydney home in September, accused of creating and maintaining a secret communications app and network known as “Ghost”.
Analysis of devices seized during his arrest later allowed investigators to break into an account holding cryptocurrency, and transfer it to the Australian federal police after they deciphered his “seed phrase” for access.
Authorities will seek to have the cryptocurrency, worth $9.3m, forfeited to the commonwealth, investigators said on Wednesday.
Jung has been charged with numerous offences including supporting a criminal organisation and dealing with the suspected proceeds of crime.
He is also accused of subscribing to cryptocurrency wallets using fake identities and not complying with evidence access orders.
Jung allegedly distributed modified smartphones for about $2,350, including a six-month subscription to the encrypted network.
The deal allegedly included regular software updates, which ended up being the network’s downfall after police “infected” the devices and began monitoring communications.
Jung remains in custody to return to court in November.
Police had the power to target people alleged to be seeking illegal profits, AFP acting commander Scott Raven said.
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The multimillion-dollar seizure was the second asset restraint stemming from the operation targeting the Ghost network, after a Perth man had cryptocurrency and properties worth about $2m restrained in August.
His declared taxable income and expenditure was “grossly out of proportion” to the value of the restrained assets, the AFP alleged.
Police have so far arrested 46 people as part of the operation targeting those allegedly behind the Ghost platform and using it to facilitate crimes.
A 47-year-old man arrested during raids in September is due to return to court in Sydney on Thursday on charges of possessing a dedicated encrypted criminal communication device to facilitate serious criminal activity and failing to comply with an evidence access order.
Police allege he helped distribute the Ghost platform and would arrange for encrypted handsets to be delivered to buyers via “dead drops” in exchange for payment.
Two phones seized at his southwest Sydney home were allegedly dedicated for use on the platform, but police say the man refused to provide investigators with information that would help them access the devices.