US Law Enforcement seizes $54 Million Cryptocurrency from New Jersey Illegal Ring Leader

According to CoinDesk, federal law enforcement has seized $54 million worth of cryptocurrencies from Christopher Castelluzzo, the leader of a notorious New Jersey drug ring. U.S. Attorney Philip R. Sellinger announced the seizure on Thursday, stating that the funds were discovered in crypto wallets belonging to Castelluzzo, a convicted drug trafficker, and his co-conspirators. The wallets held the laundered proceeds of the crew's mail-order cocaine and designer drug operations, which were active between 2010 and 2015.

FBI Newark Special Agent in Charge James E. Dennehy said in a statement that the forfeiture action should serve as a lesson to those who mistakenly believe that their illicit behavior or ill-gotten proceeds cannot be traced. The drug proceeds, initially invested as $9,000 in ETH, grew to about $53 million, plus a wide assortment of other tokens, including solana (SOL), cardano (ADA), and bitcoin. The U.S. seized the funds as a forfeiture due to their connection to the original drug trafficking.

Castelluzzo and others were originally busted in a drug ring that operated through darknet sites, including Silk Road and Blue Sky, receiving payment in bitcoin. The operation distributed a range of drugs, including cocaine and methylone from China. While serving a 20-year prison sentence, authorities caught Castelluzzo discussing his crypto strategy, including plans to evade taxes and liquidate his holdings outside the country. In prison conversations, he and others debated the merits of various offshore destinations for the crypto fortune, including Malta, Ireland, and Latin America.