Alleged crime app mastermind hit with drug charges

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Federal police allege the Ghost app was solely built for the criminal underworld. -AAP Image

An alleged app creator accused of allowing underworld figures to plot murders and drug deals under the cover of encryption has been slapped with fresh, serious charges.

Jay Je Yoon Jung, 32, was arrested at his parents' Sydney home in September, accused of creating and maintaining a secret communications app and network known as Ghost.

Analysis of devices seized during his arrest later allowed investigators to break into an account holding $9.3 million in cryptocurrency, set to be forfeited to the Commonwealth.

The alleged creator of an app has been charged with six new offences and remanded in custody. (Dave Hunt/AAP PHOTOS)

Things got worse for Jung when hit with new drug charges during a court appearance on Friday, some carrying maximums of life in prison.

The six new offences include conspiracy to traffic a commercial quantity of cocaine and conspiracy to traffic a commercial quantity of MDMA.

He is also accused of dealing in more than $1 million in criminal proceeds, which carries a maximum penalty of 25 years in prison, federal police said on Friday.

Jung, who was already facing five charges including supporting a criminal organisation, was remanded in custody until a November court appearance.

Federal police allege the Ghost app was solely built for the criminal underworld.

About 700 federal police were involved in arrests and raids across two days in September, with alleged criminals nabbed in NSW, Victoria, Western Australia, South Australia and the ACT.

Near-simultaneous police action was taken in Ireland, Italy, Sweden and Canada.

Up to 50 alleged Australian offenders accused of using Ghost face serious charges, including significant prison sentences.

The AFP says it infected the phones allegedly used by criminals to organise crimes including murder. (Lukas Coch/AAP PHOTOS)

Jung allegedly distributed modified smartphones for about $2350, including a six-month subscription to the encrypted network.

The deal allegedly included regular software updates, which ended up being the network's downfall.

"We infected the devices, enabling us to access the content," AFP deputy commissioner Ian McCartney told reporters in September.

That allowed police to intervene in 50 cases of threats to life or other harm.

To date, the operation has also halted the movement of 210kg of illicit drugs, led to 29 weapon seizures and restrained more than $11.1 million in assets.