More than $9 million worth of cryptocurrency linked to the accused mastermind of a communications app allegedly used by organised crime figures has been seized by the Australian Federal Police (AFP).

Jay Je Yoon Jung, a 32-year-old man, was arrested in the southern Sydney suburb of Narwee last month and charged with creating and administering the app Ghost, which police said was “built solely for the criminal underworld” and used around the globe.

Around $9.3 million in cryptocurrency was seized after a specialist analysed devices from Jung’s home and deciphered the so-called ‘seed phrase’ needed to access his crypto account, the AFP said on Wednesday.

The funds have been transferred into the AFP’s cryptocurrency storage and restrained as suspected proceeds of crime, the agency said.

The seizure comes after authorities took possession of almost $2 million in cryptocurrency and properties last month which were allegedly linked to a Perth man who was accused of using the Ghost platform.

AFP acting commander Scott Raven said the seizures showed the agency had the capability to capture organised crime’s ill-gotten gains.

“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,” he said.

Jung was arrested on 17 September and charged with five offences including dealing in identifying information and using it to commit fraud, as well as supporting a criminal organisation.

His arrest came after authorities were able to decrypt and read messages sent through the Ghost platform, the AFP said.

Police alleged Jung used a “network of resellers” to distribute modified smartphones to criminals for around $2,350 each, which included a six-month subscription to the encrypted communications app.

As of Tuesday, the AFP alleged there were 376 active Ghost handsets in Australia.


Police say numerous devices have been seized as part of investigations into the Ghost platform. Photo: AFP / Supplied

Alleged mastermind’s ‘close associate’ arrested

A 47-year-old man who was an alleged distributor of the Ghost platform was also arrested and charged on 17 September at his home in the western Sydney suburb of Greenacre, the AFP confirmed on Wednesday.

Police alleged the man was a “close associate” of alleged Ghost mastermind Jay Je Yoon Jung and had arranged for encrypted phones to be delivered to buyers using so-called ‘dead drops’ — when an item is left in a secret location, to avoid direct meetings.

Eight mobile phones, three laptops, and 23 SIM cards were allegedly seized from the man’s house, as well as encrypted USB sticks, other devices, and $17,400 in cash.

The AFP said it would allege two of the mobile phones seized were Ghost devices and the man had refused to help police unlock them.

The man was charged with two offences which held maximum penalties of 10 years and three years in jail, respectively.

ABC News reported the man was Mandat Lieu, who was granted bail in September.

A case involving a man of that name was mentioned in Sydney’s Downing Centre Local Court on Wednesday.

Jung, who had not applied for bail, is expected back in court for a bail review on 15 October.

In total, the AFP said more than $11 million in assets, $2.37 million in cash, 200kg of illicit drugs, and 30 firearms and weapons had been seized as part of investigations linked to its disruption of the Ghost platform and its alleged users.

Confiscated funds were placed into a special account managed for the Commonwealth by the Australian Financial Security Authority, the AFP said.

“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,” it said.