AFP Cracks Crypto Wallet, Seizes A$9M in Asset Recovery
The Australian Federal Police (AFP) decrypted an encrypted crypto wallet backup and seized approximately A$9 million (US$5.9 million) in cryptocurrencies. Digital forensics officers found password-protected notes and an image with mixed number sequences. A data scientist removed extra digits from six groups to reconstruct the 24-word seed phrase and unlock the wallet. The suspect, accused of selling illicit technical products, faced up to ten years in prison for refusing to surrender private keys under Australian law. This operation, the AFP’s second major crypto forensics success after a US$3 million recovery, demonstrates growing authorities’ capabilities in crypto wallet investigations. The seized funds are held by the AFP Criminal Assets Confiscation Taskforce pending court approval and will be reallocated to crime prevention programs once forfeiture is confirmed.
Neutral
The seizure showcases AFP’s enhanced crypto forensics but has limited direct impact on market supply or token demand. In the short term, it may increase security scrutiny, prompting some traders to enhance wallet safety. Long term, improved enforcement could bolster institutional confidence in crypto, supporting stability. Overall, the news is unlikely to alter price trends for individual cryptocurrencies.