Ghost app takedown: Police allege Jay Je Yoon Jung made $10m from encrypted underworld app
It is understood Australian Federal Police are scrambling to locate $10m in cryptocurrency which they claim belongs to the alleged mastermind behind the underworld’s latest encrypted communication app Ghost.
Police & Courts
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Australian Federal Police are scrambling to locate a missing hardware wallet containing an estimated $10 million in cryptocurrency belonging to commercial cleaner-turned-alleged underworld tech whiz, Jay Je Yoon Jung.
Jung, an unassuming 32-year-old who lives at home with his parents in Western Sydney, was arrested in sweeping raids on Tuesday morning, accused of being the mastermind behind an elusive underworld communication app dubbed “Ghost”.
Police allege the platform, which centres on specially configured mobile phones that come pre-loaded with the subscriber-based app, was used by gangsters, bikies and criminals across the globe to traffic drugs, plan kidnappings and plot murders.
The platform was virtually untouchable for years before AFP technical experts found a way to infiltrate it and began monitoring conversations, leading them to pinpoint Jung as its alleged architect and administrator.
The Saturday Telegraph understands police will allege Jung “invented” Ghost in 2015 but hired an Indian-based company to develop the software.
It is alleged Jung was responsible for overseeing the entire operation from the bedroom of his parents’ Narwee home when he wasn’t working in their commercial cleaning business.
Police allege he played a troubleshooting role in the day-to-day running of the platform, offering IT support while entrusting a series of loyal lieutenants around the world to attract new clients and resign existing ones.
It is alleged Jung made almost $3m in profits in the nine years Ghost was operational.
Police claim Jung accepted cash but actively encouraged users to pay for access to the network using cryptocurrency, which he then allegedly ploughed into the digital currency market, amassing a fortune that investigators estimate sits at just over $10m.
Police believe that the crypto is being held on what is known as a hardware wallet — a small, tag-like gadget that must be physically connected to a computer to work — however, its whereabouts are currently unknown.
It is understood officers are scrambling to try and locate the device ahead of any bail application Jung might make in the near future.
The move comes as The Saturday Telegraph can reveal fresh details of the case against Jung, including claims that he used his own bank accounts to accept payment for the Ghost devices, made bold assurances to would-be buyers about the level of security attached to the platform, and allegedly used a fake name to purchase international SIM cards for the phones.
It is understood police will allege Jung’s personal computer offered up the largest cache of evidence in the case, thanks in part to his apparently meticulous record keeping.
It is alleged the computer contained folder after folder of information relating to the establishment of Ghost and its ongoing maintenance, including a nondisclosure agreement between Jung and Delhi-based developers Core Techies India, naming Jung as the “inventor”, Ghost as the “invention”, and outlining Jung’s financial and operational responsibilities to maintain the network.
According to police, a separate folder on the computer contained an Excel spreadsheet featuring a full list of all current Ghost users, their emergency passwords, subscription renewal dates and the associated SIM card assigned to the device. A second folder contained similar details for past users.
Meanwhile, two tabs labelled “bills” and “profits” allegedly contained a chronological cost of the expenses Jung allegedly incurred keeping Ghost running since January 2021, including paying $265,000 to Core Techies India, $56,000 to Google for advertising space and $376,000 to Keepgo for SIM cards.
According to police, the same documents showed Ghost made a total profit of $2.98m between October 2015 and July 2024.
Police will allege another folder showed a series of advertising documents for Ghost, which boasted that the platform’s clients included “businesses, government agencies and high-profile clients” who benefited from Ghost’s “military grade encryption algorithm”.
The material further stated Ghost’s secure network and devices “have never been compromised by any unauthorised third party”, telling customers “you will literally be a Ghost”.
Police claim they also uncovered online discussions Jung allegedly had with potential clients where he reinforced the claims made in the advertising material, including telling one man based in the United Arab Emirates that its system “cannot be compromised”.
The Telegraph understands undercover AFP officers managed to make contact online with a local Ghost supplier in July 2023, and organised to purchase five handsets at $2350 each.
The phones were delivered via a pre-organised “dead drop” in Greystanes, giving police physical access to the device for the first time.
They allegedly discovered the phones could be wiped remotely or via the entry of a “duress” password by its user, and that the app icon could be altered to look like a generic calculator icon on the home screen, with access only granted via the entry of a number followed by an equals sign.
Among those alleged to have used Ghost for illegal activity is Sydney man Brendan Kurt Lamb, who was charged with trafficking a controlled drug after police raided his Oran Park home last month, allegedly locating a Ghost phone, cocaine and $50,000 in cash.
Almost two dozen people have been charged so far, with the AFP claiming it monitored 125,000 messages and 120 video calls from about 400 users in the months leading up to Tuesday’s raids.
They claim users are brazen, posting photos of drugs, making serious threats to kill and kidnap, giving signs their online safe haven could not be infiltrated.
Jung, who is facing five charges including supporting a criminal group, dealing with suspected proceeds of crime and dealing with identifying information to facilitate fraud, did not apply for bail in court on Tuesday and it was formally refused.
The case will return to court in November.
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