Cybersecurity News that Matters

Cybersecurity News that Matters

Operation Kraken: Australian police hack criminal app to arrest its creator

The Australian Federal Police (AFP) arrested an alleged mastermind behind Ghost on September 17. Source: AFP

by Dain Oh

Sep. 19, 2024
10:02 PM GMT+9

The Australian Federal Police (AFP) announced on Wednesday the arrest of an alleged mastermind behind Ghost, an encrypted communication platform used exclusively by criminals. The arrest was made possible through international law enforcement efforts known as ‘Operation Kraken.’

According to an AFP press release, a 32-year-old man from New South Wales has been charged with creating and managing Ghost, an encrypted communication platform allegedly designed solely for criminal use.

Australian broadcaster ABC News reported that the charged man is Jay Je Yoon Jung. By day, Jung worked for his parents’ commercial cleaning business, but by night, he is alleged to have been the mastermind behind Ghost.

Police believe that Jung created Ghost nine years ago, when he was 23. They allege that the platform has been used by the criminal underworld to facilitate serious crimes, including drug trafficking, money laundering, contract killings, and threats of violence. According to the police, the app has been favored by Italian gangs in Victoria, bikies in Western Australia, and Middle Eastern organized crime syndicates in New South Wales.

Jung reportedly used a network of resellers to provide specialized handsets to criminals worldwide. These handsets, which were modified smartphones with his app installed, were sold for approximately 2,350 Australian dollars. This price included a six-month subscription to an encrypted network and technical support. As of September 17, the AFP alleged that there were 376 active handsets in Australia.

Source: Australian Federal Police (AFP)

Jung was arrested on September 17 and appeared in Downing Centre Local Court the following day, September 18. He faced five charges, including supporting a criminal organization, dealing in identifying information, and using it to commit fraud.

As part of Operation Kraken, around 700 AFP personnel executed search warrants and provided support during two days of action across four Australian states and territories on September 17 and 18.

Up to 50 alleged offenders in Australia, accused of using Ghost, are facing serious charges that could result in significant prison sentences. Additionally, the AFP reported that near-simultaneous police actions are being carried out in Ireland, Italy, Sweden, and Canada, with more arrests expected both in Australia and internationally in the coming days.

Operation Kraken represents the latest effort by law enforcement to dismantle a dedicated encrypted communications platform. Over the past decade, platforms used by transnational organized crime—such as EncroChat, Sky Global, Phantom Secure, AN0M, and now Ghost—have been taken down. The AFP noted that this is the first time an Australian-based individual has been accused of being the alleged mastermind and administrator of a global criminal platform that law enforcement was able to decrypt and read messages from.

The investigation into Ghost began two years ago. In 2022, international partners started targeting the platform and invited the AFP to join an operational task force. Europol established a global task force, code-named OTF NEXT, led by the FBI and the French Gendarmerie. This task force 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 Services. The Icelandic Police have also assisted with the operation.

While the AFP operated within the task force, it also launched Operation Kraken after developing a covert method to infiltrate Ghost. The platform’s administrator regularly issued software updates, similar to those required for standard mobile phones. However, the AFP managed to modify these updates, effectively infecting the devices and allowing access to their content within Australia.

Operation Kraken led to the arrest of 38 suspects, the execution of 71 search warrants, and intervention in 50 threats to life and harm. It also prevented more than 200 kilograms of illicit drugs from reaching the Australian community and resulted in the seizure of 25 illicit firearms and weapons.

“Today, we have made it clear that no matter how concealed criminal networks believe they are, they cannot escape our collective efforts,” said Europol Executive Director Catherine De Bolle. “This operation exemplifies what Europol is all about: transforming collaboration into tangible results by bringing together the right people, tools, and expertise to address every aspect of this complex operation,” she added.

Europol Press Conference on Operation Kraken

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  • Dain Oh
    : Author

    Dain Oh is a distinguished journalist based in South Korea, recognized for her exceptional contributions to the field. As the founder and editor-in-chief of The Readable, she has demonstrated her expe...

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