In recent developments, U.S. authorities led by U.S. Attorney Philip R. Sellinger have successfully seized $54 million worth of Ethereum (ETH) from Christopher Castelluzzo, a convicted drug dealer operating in Lake Hopatcong, New Jersey.

Major Crypto Raid
The U.S. Attorney's Office has filed a civil forfeiture lawsuit to recover cryptocurrency that had previously been seized, identified as proceeds from an illegal drug distribution scheme operating in and around New Jersey.

U.S. Attorney Philip R. Sellinger emphasized the 'commitment' of law enforcement in seizing financial gains from criminal activity, regardless of their form. Sellinger also stated:

The civil action we are taking today aims to recover millions of dollars in cryptocurrency, which the defendant is alleged to have obtained from drug sales. Whether as simple as bags of cash or as sophisticated as cryptocurrency, we will take the necessary steps to seize the financial gains that defendants obtain from criminal activity.
According to a press release from the U.S. Department of Justice (DOJ) regarding the case, the prosecution sheds light on the use of cryptocurrencies such as Bitcoin (BTC) and Ethereum by criminals on the darknet to evade detection.

Additionally, James E. Dennehy, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Newark, stated that the FBI played a crucial role in uncovering illegal activities and illicit profits.

Seized Ethereum Wallet of Drug Dealer

According to court documents and investigations conducted, Christopher Castelluzzo and his associates quietly sold drugs from 2010 to 2015.

In 2013, they were allegedly starting to trade drugs on darknet platforms in exchange for Bitcoin. Castelluzzo, using the profits from drug sales, participated in the Initial Coin Offering (ICO) of Ethereum in July 2014, purchasing 30,000 Ethereum. Additionally, Castelluzzo received 30,000 ETH Classic in 2016.

Castelluzzo's plan to transfer these funds to a tax haven in Ireland, Malta, or the Bahamas, or possibly keep them in USDT (Tether), was revealed in the seized documents.

However, a subsequent search warrant led to a raid at the home of Brian Krewson, an associate of Castelluzzo. Police discovered cryptocurrency wallets under Krewson's control, and after obtaining the necessary passwords, law enforcement executed the seizure of Ethereum, valued at $31 million at the time.

Currently serving a 20-year federal and state prison sentence for drug distribution charges, Castelluzzo attempted to evade taxes and transfer 30,000 Ethereum out of the United States while being incarcerated.

However, Castelluzzo's plan was thwarted when recorded phone calls from prison exposed his efforts to launder cryptocurrency. Consequently, the U.S. intervened and seized Castelluzzo's cryptocurrency related to his drug trafficking offenses.

The current value of 30,000 Ethereum is approximately $54 million, highlighting the significant impact of the seizure.

At the time of writing, ETH is trading at $1,815, reflecting a 0.9% increase in the past 24 hours and a steady upward trend of over 2% in the past seven days, demonstrating strong bullish momentum in the market.

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