An alleged mastermind behind a secret app for criminals and violent enforcers has been charged by the Australian Federal Police (AFP) during a global takedown of an encrypted communications network.
AFP Operation Kraken charged a NSW man, Jay Je Yoon Jung, aged 32, for creating and administering Ghost, a dedicated encrypted communication platform, which the AFP alleges was built solely for the criminal underworld. About 700 AFP members executed search warrants and provided support during two days of action across four Australian states and territories across September 17-18, 2024. Near-simultaneous police action is being undertaken in Ireland, Italy, Sweden and Canada.
Up to 50 alleged Australian offenders accused of using Ghost are facing serious charges, including significant prison sentences. More Australian and international arrests are expected over the coming days.
It will be alleged the Australian offenders who used Ghost were trafficking illicit drugs, money laundering, ordering killings or threatening serious violence. In Australia, the AFP prevented about 50 threats to kill or harm.
Operation Kraken is law enforcement’s latest takedown of a dedicated encrypted communications platform. Law enforcement has again infiltrated a criminal platform and outsmarted organised crime. EncroChat, Sky Global, Phantom Secure, AN0M, and Ghost were used by transnational serious organised crime and have been dismantled over the past decade.
However, it is the first time an Australian-based person stands accused of being an alleged mastermind and administrator of a global criminal platform, of which the AFP was able to decrypt and read messages. The AFP charged Jung at his Narwee home on September 17. He is appearing in Sydney’s Downing Centre Local Court on Wednesday, September 18, on five charges, namely;
- One count of supporting a criminal organisation contrary to s.390.4(1) of the Criminal Code 1995 (Cth), which carries a maximum penalty of three years’ imprisonment;
- One count of dealing with the suspected proceeds of an indictable offence less than AUD100,000 contrary to s.400.9(1) of the Criminal Code 1995 (Cth), which carries a maximum penalty of three years’ imprisonment;
- One count of dealing in identifying information and using it to commit fraud contrary to s.372.1(1) of the Criminal Code 1995 (Cth), which carries a maximum penalty of five years’ imprisonment;
- One count of obtaining identification information using a carriage service with intent contrary to s.372.1a(3) of the Criminal Code 1995 (Cth), which carries a maximum penalty of five years’ imprisonment; and
- One count of contravening a requirement in a s.3LA order contrary to s.3LA (6) of the Crimes Act 1914, which carries a maximum penalty of 10 years’ imprisonment.
The AFP-led Criminal Assets Confiscation Taskforce successfully obtained Proceeds of Crime Act 2002 (Cth) Restraining Orders over Jung’s assets. Property restrained includes various cryptocurrencies and bank accounts.
It will be alleged that he used a network of resellers to offer specialised handsets to criminals worldwide. The handsets, which were modified smartphones, were sold for about AUD2,350, which included a six-month subscription to an encrypted network and tech support. As of September 17, the AFP will allege there were 376 active handsets in Australia.
Ghost was created about nine years ago. However, the opportunity for law enforcement to target the platform arose in 2022. That year, international partners started targeting Ghost and asked the AFP to join an operational taskforce.
Europol established a global task force code-named OTF NEXT, which was led by the FBI and French Gendarmerie and includes the AFP, Royal Canadian Mounted Police (RCMP), Swedish Police Authority, Dutch National Police, Irish Garda Síochána and the Italian Central Directorate for Anti-Drug Service. The Icelandic Police have also assisted the OTF.
While the AFP worked within the taskforce, it also established Operation Kraken after developing a covert solution to infiltrate Ghost.
As administrator, Jung regularly pushed out software updates. However, the AFP was able to modify those updates, which basically infected the devices, enabling the AFP to access the content on devices in Australia.
Most of the alleged offenders who used Ghost are in NSW. However, Ghost users are also in Victoria, Western Australia, South Australia and the ACT. Results from Operation Kraken include 38 arrests, 71 search warrants conducted, intervening in 50 threats to life/threats to harm, preventing the supply of more than 200 kilograms of illicit drugs from harming the Australian community, and seizing 25 illicit firearms/weapons.
“In 2021, Commissioner Reece Kershaw revealed the details of Operation Ironside,” AFP Deputy Commissioner McCartney said via a September 18 statement. “The lives of many serious criminals dramatically changed when they realised their phone, and those who vouched for it, had betrayed them. The Commissioner warned organised crime that the AFP would come for them again – and at scale. That time is now.”
“Over the past two days, about 700 AFP members have executed and assisted in search warrants across four states to arrest those who have used a dedicated encrypted communications platform named Ghost. We allege hundreds of criminals, including Italian organised crime, outlaw motorcycle gang members, Middle Eastern organised crime and Korean organised crime, have used Ghost in Australia and overseas to import illicit drugs and order killings.
“Today, we have made it clear that no matter how hidden criminal networks think they are, they can’t evade our collective effort,” said Europol Executive Director Catherine De Bolle. “This operation is what Europol is all about – turning collaboration into concrete results by bringing together the right people, tools and expertise to address every aspect of this complex operation. The work carried out is part of our ongoing commitment to tackling organised crime wherever it operates. I want to extend my gratitude to all our global partners who played a vital role in making this operation a success.”
