- AFP cracks encrypted crypto wallet, uncovering $5.9 million in assets.
- Data scientist decodes hidden seed phrase after intricate digital investigation.
- Australia plans stricter crypto regulations to boost transparency and accountability.
Australian Federal Police (AFP) officers have successfully unlocked a coded cryptocurrency wallet containing over 9 million Australian dollars ($5.9 million), marking one of the agency’s most impressive technological breakthroughs.
AFP Commissioner Krissy Barrett described the operation as “miraculous work,” praising a data scientist within the agency who has become known as the “crypto safe cracker.” The wallet was discovered during an investigation into a well-connected alleged criminal accused of amassing cryptocurrency through the sale of a “tech-type product” to other offenders.
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While searching the suspect’s phone, investigators found password-protected notes and an image featuring six groups of random numbers and words. The AFP’s digital forensics team determined that the pattern could be linked to a crypto wallet’s seed phrase, which is critical for unlocking stored digital funds.
The Secret Behind the Code
One of the AFP’s data scientists discovered that the suspect had attempted to disguise the wallet’s seed phrase by modifying the numerical patterns. Some strings appeared manually altered rather than computer-generated.
After analyzing the structure, the expert realized that removing the first number from each group revealed the 24-word seed phrase, ultimately giving law enforcement access to the wallet.
Barrett noted that the suspect had refused to share the wallet keys, which is punishable by up to 10 years in prison in Australia. Without the successful decryption, the accused could have completed his sentence and walked free as a multi-millionaire from the proceeds of organized crime. According to Barrett, that was not an acceptable outcome for the AFP.
A Growing Expertise in Crypto Recovery
This achievement is not the AFP’s first crypto-related recovery. The same data scientist previously helped reclaim over $3 million in digital assets using a different decoding technique.
The funds were confiscated under the Criminal Assets Confiscation Taskforce and, if ordered by the court, will be transferred to a Commonwealth account and redistributed by Home Affairs Minister Tony Burke to support crime prevention projects.
Expanding Regulatory Oversight of Crypto Platforms
Australia is preparing to tighten control over its cryptocurrency sector through new draft legislation that would require crypto exchanges and related service providers to obtain Australian financial services licenses. The proposal seeks to amend the Corporations Act 2001 to classify digital asset platforms and tokenized custody platforms as regulated financial products.
This move aims to improve transparency, strengthen accountability, and align crypto operations with traditional financial regulations.
The AFP’s latest crypto recovery and the government’s proposed reforms together signal Australia’s firm stance on tackling illicit digital activity while enhancing public confidence in the nation’s growing crypto economy.
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