Data Scientist Deciphers Hidden Crypto Wallet
Australian Federal Police (AFP) have seized nearly $5.9 million in cryptocurrency after a data scientist successfully cracked a coded wallet backup. The breakthrough came during an investigation into a suspected high-level criminal accused of selling technology to organized crime groups in exchange for digital assets.
The AFP discovered the encrypted wallet while examining the suspect’s phone, which contained password-protected notes and an image displaying random numbers and words. Investigators quickly realized the file might be the key to a significant stash of crypto profits.
AFP Commissioner Krissy Barrett praised the forensic team’s persistence and described the achievement as “miraculous work” during a Wednesday address. She credited one of the agency’s data scientists, nicknamed the “crypto safe cracker,” for decoding the complex system that had concealed the funds.
A Puzzle Hidden in Plain Sight
The sequence discovered on the phone contained six groups of numbers with more than 50 possible combinations. Barrett said the team suspected it could be linked to a crypto wallet but needed to decode the pattern before confirming it.
The suspect, meanwhile, refused to hand over the private keys to his wallet, a refusal that carries a potential 10-year prison sentence under Australian law. Despite the setback, investigators pressed on.
“We knew if we couldn’t open the crypto wallet, and if the alleged offender was sentenced, upon release, he would leave prison a multi-millionaire, all from the profits of organized crime,” Barrett said. “For our members, that was not an acceptable outcome.”
How the Code Was Cracked
The AFP’s data scientist began to analyze the image more closely and noticed something unusual. The strings of numbers, he said, “felt wrong”, they didn’t look computer-generated. Instead, they appeared to have been deliberately altered by a human.
The key insight came when the scientist realized the first number in each sequence needed to be removed. This adjustment revealed the correct pattern, eventually unlocking a 24-word seed phrase, the recovery key for the suspect’s crypto wallet.
By identifying and reversing the suspect’s attempt to disguise his seed phrase, the team gained access to the wallet and recovered millions in digital assets.
Not the First Crypto Breakthrough
This is not the first time the AFP’s digital forensics team has cracked a crypto case. The same data scientist previously helped recover more than $3 million worth of digital assets in a separate operation using another decoding technique.
Both recoveries were carried out under the AFP-led Criminal Assets Confiscation Taskforce, which targets the proceeds of organized crime. Barrett highlighted the team’s growing expertise in digital asset recovery and the importance of forensic innovation in modern policing.
“Our ability to adapt to new technologies and find ways around encryption is what sets us apart,” she said. “We’re not just chasing criminals; we’re dismantling the systems that allow them to profit.”
What Happens to the Seized Funds
If the court rules in favor of confiscation, the seized cryptocurrency will be transferred to a commonwealth account. From there, Home Affairs Minister Tony Burke will redistribute the funds to support crime prevention and community safety programs across Australia.
Barrett said the case demonstrates how modern criminals are using increasingly sophisticated methods to hide illicit profits, and how law enforcement is evolving just as quickly.
“This case shows that even the most advanced digital concealment isn’t foolproof,” she said. “With the right mix of skill, patience, and innovation, we can bring those hidden assets back to the public.”
The AFP’s latest success adds to a growing list of victories in the global fight against crypto-related crime, underscoring Australia’s determination to stay ahead of offenders who rely on digital currencies to obscure their wealth.
