The Australian Federal Police (AFP) have reportedly cracked seed phrase access in an alleged cryptocurrency scam involving a ghost app. Authorities seized digital wallets and gained control of the funds by recovering seed phrases—a key security feature in crypto wallets—connected to the fraudulent scheme.
The scam involved a ghost app, which mimicked legitimate crypto services but was designed to steal users’ funds. Victims were tricked into entering their seed phrases, granting the scammers full access to their crypto wallets.
The AFP’s breakthrough in retrieving seed phrases marks a significant step in the investigation. The seized funds are now under the custody of the authorities, and further investigations are ongoing to track additional assets and identify those involved in the scheme. The case highlights the growing threat of crypto-related fraud and the need for heightened awareness around securing seed phrases and wallet information.
