‘Computer nerd’ in Australia accused of creating Ghost encryption messaging app for criminal underworld

The Hague – A 32-year-old Australian “computer nerd” has been arrested on suspicion of building an encrypted messaging app used by hundreds of criminals worldwide to arrange drug deals and order killings, police said Wednesday. Australian Federal Police said the Ghost app was marketed to underworld figures as “unhackable” and was used by hundreds of suspected criminals from Europe, the Middle East and Asia.

But unbeknownst to users, global law enforcement agencies had hacked into the network and were watching as criminals discussed illegal drug trafficking, money laundering, murder and serious violence.

Authorities sprang into action on Tuesday and Wednesday, arresting criminals from Italy, Ireland, Sweden, Canada and Australia, including Jay Je Yoon Jung, the alleged “mastermind” behind the app.

Catherine De Bolle, director of Europol, said law enforcement authorities from nine countries were involved in the international operation.

“Today we have made it clear that criminal networks, no matter how hidden they behave, cannot escape our joint effort,” she said.

“This was really a global game of cat and mouse, and today the game is over,” Jean-Philippe Lecouffe, deputy executive director of Europol, told reporters at the agency’s headquarters in The Hague.

Authorities have dismantled an Australian drug lab while seizing weapons, drugs and more than $1.1 million in cash worldwide, the EU’s police service said.

Ghost, a kind of WhatsApp for criminals, was developed nine years ago and was only accessible via modified smartphones that sold for around A$2,350 (US$1,590).

The hefty price included a six-month subscription to the Ghost app and technical support, Australian police said Wednesday. Users also had to purchase an ongoing subscription.

The French police managed to find out where the creator was: in Australia. Together with the local police they started to tackle the platform.

The app’s creator regularly released software updates, but in 2022, Australian police were able to hijack these updates to gain access to encrypted content.

For two years, authorities watched as Ghost grew in popularity and criminals exchanged messages, including 50 death threats that Australian police said they were able to thwart.

According to Europol, thousands of people worldwide use Ghost, with around 1,000 messages exchanged through the app every day.

In Australia alone, there were 376 phones with the Ghost app installed.

In one case, police intercepted an image of a gun pointed at someone’s head and were able to rescue the person within an hour, said Australian Federal Police Assistant Commissioner Kirsty Schofield.

Ireland, which ranks second for Ghost users, was able to “dismantle a major drug route into our country, seizing drugs with a street value of around €16 million,” Assistant Police Chief Justin Kelly told The Irish Times.

Hacking into encrypted apps on phones has become increasingly difficult for authorities, but not impossible. Three years ago, the dismantling of a similar network called ANOM led to 800 arrests worldwide.

What they didn’t know was that ANOM was developed and distributed by the FBI, and it allowed U.S. and other law enforcement agencies to decrypt 27 million messages, many of which related to criminal activity.

Australian Federal Police Deputy Commissioner Ian McCartney said that after the ANOM network was unravelled, Ghost “started to fill that space”.

He added that law enforcement is aware of the existence of other similar encrypted apps and that he hopes to see some of them shut down within 12 months.

According to Europol, encrypted communications became “increasingly fragmented” after other services were disrupted or shut down, leading criminals to diversify their methods.

McCartney said the Ghost app creator, who is from New South Wales, still lived at home with his parents and had no criminal history.

The “computer nerd” was motivated by profit and was “somewhat surprised” when police arrested him on Tuesday, McCartney said.

Schofield added that police had to act quickly as the man had the ability to “erase the communications in the system”.

“Our tactical teams were able to secure him and the equipment within 30 seconds of entering,” she said.

The 32-year-old was charged with five offences, including supporting a criminal organisation, which carries a maximum prison sentence of three years.

He appeared in Sydney District Court on Wednesday but was denied bail. No trial date has yet been set.

A further 38 people have been arrested across Australia.