Operation Kraken: AFP restrains $9.3 million in crypto linked to alleged head of global organised crime app
The AFP-led Criminal Assets Confiscation Taskforce (CACT) has successfully restrained $9.3 million in cryptocurrency as part of an investigation into the alleged mastermind behind Ghost, the dedicated encrypted communication platform.
The Narwee man, 32, was arrested on 17 September as part of AFP Operation Kraken and charged with five offences, including supporting a criminal organisation.
The assets were restrained after an analytics specialist within the AFP-led CACT deciphered the account’s “seed phrase” following analysis of digital devices recovered from the Narwee home.
This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage.
The cryptocurrency was restrained under the Commonwealth Proceeds of Crime Act 2002. The restraint is the second restraint of assets linked to AFP Operation Kraken, after assets linked to a syndicate in WA were restrained by the CACT in September.
AFP acting Commander Scott Raven said organised crime groups who tried to hide the profits of their illicit activities would find the AFP was one step ahead.
“The restraint of these assets shows the technical capabilities and powers that the AFP, and our partners through the CACT, are able to bring to bear on organised crime,” acting Commander Raven said.
“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.”
Ongoing results from Operation Kraken include:
- 46 arrests;
- 93 search warrants conducted;
- Intervening in 50 threats to life/threats to harm;
- Preventing more than 200kg of illicit drugs from harming the Australian community;
- Seizing 30 illicit firearms/weapons;
- $2.37m in cash seized; and
- $11.09m in assets restrained.
Investigations are ongoing. The CACT will seek to have the restrained assets forfeited to the Commonwealth in due course.
The AFP-led CACT brings together the resources and expertise of the AFP, Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force. It was permanently established by government in 2012 as a proactive and innovative approach to trace, restrain and ultimately confiscate criminal assets.
The highly skilled members of the CACT are located Australia-wide and comprise of police, financial investigators, forensic accountants, lawyers, cryptocurrency experts and partner agency specialists.
The Commonwealth’s proceeds of crime laws provide extensive tools for the restraint of both proceeds and instruments of crime, as well as imposing financial penalty and unexplained wealth orders, based on the civil standard of proof. Since 1 July 2019, the CACT has restrained more than $1.1 billion in criminal assets, delivering a significant blow to organised criminals.
When ultimately confiscated, the funds are placed into the Confiscated Assets Account, a special purpose account, which is managed by the Australian Financial Security Authority on behalf of the Commonwealth. These funds can then be distributed by the Attorney-General as Minister responsible to benefit the community through crime prevention, intervention or diversion programs or other law enforcement initiatives across Australia.