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Australian Federal Police have recovered $5.9 million in cryptocurrency after a data scientist cracked an encrypted wallet by identifying human alterations in what appeared to be a computer-generated seed phrase backup.
The breakthrough came during an investigation into a suspect accused of hoarding millions through illicit tech sales who refused to provide the wallet’s password, an offense punishable by up to 10 years in Australian prison. AFP digital forensics experts discovered the 24-word seed phrase hidden within numbered sequences on the suspect’s phone by removing the first digit from each string.
The crypto wallet saga in Australia has become one of the most talked-about breakthroughs in digital forensics this year. The Australian Federal Police (AFP) successfully cracked a coded crypto wallet backup containing more than $5.9 million in digital assets after a brilliant data scientist deciphered an intricate numerical pattern hidden within a suspect’s mobile phone.
In a stunning revelation, AFP Commissioner Krissy Barrett described the breakthrough as “miraculous work,” praising the digital forensics team for unraveling what was once thought impossible. The coded crypto wallet case is now a symbol of how cutting-edge data science can outsmart even the most sophisticated cybercriminals.
The investigation began during a probe into a “well-connected alleged criminal” suspected of hoarding millions in cryptocurrency through illicit sales of a tech-related product. During the search, the AFP discovered password-protected notes and a mysterious image filled with random numbers and words.
According to Commissioner Barrett, “the numbers were divided into six groups with over 50 possible combinations.” The AFP’s digital forensics experts soon realized the strings might point to a coded crypto wallet. When the suspect refused to hand over his private keys—a crime punishable by up to 10 years in Australia—the AFP decided to take matters into its own hands.
The real turning point came when one of AFP’s top data scientists, now nicknamed “the crypto safe cracker,” noticed irregularities in the code. “Some of the number strings felt wrong,” the expert reportedly said. “They didn’t look computer-generated — they looked human-altered.”
By removing the first number from each sequence, the scientist uncovered the hidden 24-word seed phrase — the master key to the crypto wallet. This discovery instantly unlocked access to millions of dollars in digital assets, marking a major milestone in Australia’s war on cyber-financial crimes.
This wasn’t the first time the AFP cracked a coded crypto wallet. In a previous case, the same digital forensics specialist helped retrieve over $3 million worth of crypto using another decoding technique. Together, these recoveries highlight the growing sophistication of law enforcement agencies in tackling crypto-related crimes.
The AFP-led Criminal Assets Confiscation Taskforce (CACT), which oversaw both operations, ensures that any seized assets are directed to public good.
Should the court approve the confiscation, the $5.9 million from this wallet will be transferred into a commonwealth account managed by Home Affairs Minister Tony Burke, who oversees redistribution toward crime prevention and community projects.
Cybersecurity expert Dr. Michael Green of the University of Sydney commented,
“This coded crypto wallet recovery demonstrates how human error, even minimal, can compromise complex security systems. It’s a reminder that cryptographic safety relies not just on encryption but also on how securely humans manage it.”
Blockchain analyst Lydia Ng, founder of CyberChain Solutions, added,
“While this case shows the power of forensic recovery, it also exposes how vulnerable crypto assets can be if proper key management protocols aren’t followed. A coded crypto wallet isn’t invincible — it’s only as strong as the methods protecting it.”
The AFP’s success has sent ripples through the crypto community, proving that even the most advanced coded crypto wallet can be cracked under expert scrutiny. It also underscores the increasing intersection between law enforcement and advanced cryptography — a space where both criminals and investigators continue to evolve.
Commissioner Barrett summarized the achievement best:
“Our digital forensic experts have shown that persistence, innovation, and human intellect can break through even the toughest coded crypto wallet barriers.”
As global regulators ramp up efforts to trace and recover illicit funds, this case stands as a testament to how the future of crypto investigations will hinge on one key factor, the ability to decode what was once believed to be unbreakable.
