Australian Authorities Seize $6.4 Million in Cryptocurrency After Cracking Seed Phrase

By: Eva Baxter

The Australian Federal Police (AFP) Criminal Assets Confiscation Taskforce (CACT) has successfully seized approximately $6.4 million (9.3 million Australian dollars) in cryptocurrency. This was accomplished after the authorities identified the seed phrase of a crypto wallet belonging to the unnamed creator of Ghost, an encrypted communication app utilized for illicit activities.

Seed phrases, which are a set of random words used to access or recover cryptocurrency, play a key role in safeguarding digital assets on various platforms. Generated by crypto wallets, these phrases are essential for the security of digital funds.

AFP Acting Commander Scott Raven emphasized the significance of this operation, noting that the $6.4 million seizure highlights the agency’s technical expertise in confronting criminal groups aiming to conceal illegal profits. Despite the vague language used to describe the agency’s techniques in 'deciphering' the seed phrase, it is believed that the AFP was likely able to extract the private key from a device linked to the wallet in question. This would involve advanced forensic methods to examine either hardware or software.

Raven stated, “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 Intensify Crackdown

This recent seizure is a significant milestone in the AFP’s ongoing investigation into organized crime under Operation Kraken, targeting the creator and users of the Ghost app. In August, an earlier operation resulted in the seizure of $1.4 million in crypto and properties associated with the app.

The crackdown by Australian authorities has achieved notable 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.

Deddy Lavid, CEO of blockchain security firm Cyvers, commented that real-time monitoring of crypto wallets could further prevent criminals from consolidating or hiding their funds. According to Lavid, “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 volumes, rapid transfers between multiple wallets, or access from compromised devices—before assets are moved beyond reach.”