Cryptocurrencies and drugs
A recent filing showed that the US Attorney's Office is taking legal action to recover more than $54 million in cryptocurrencies linked to an illegal drug distribution scheme. Cryptocurrencies have been seized. Including 30,000 Ethereum (ETH) coins worth about $53.5 million.
US Attorney Seizes $54 Million in Drug-Linked Cryptocurrencies The US Attorney's Office, led by Philip R. Selinger. Civil forfeiture action to recover cryptocurrencies valued at more than $54 million. Which is linked to illegal drug distribution on the dark web, especially in New Jersey.
Selinger stressed that they will confiscate any financial gains obtained from criminal activities. Regardless of whether it involves cash or cryptocurrencies. Notably, this action serves as a warning to those who believe that cryptocurrency transactions can protect their illicit behavior from law enforcement.
Meanwhile, the scheme implicated Christopher Castelluzzo and his associates. Who conspired to sell drugs between 2010 and 2015. It is worth noting that they expanded their operations to the dark web around 2013. They accepted Bitcoin in exchange for their illegal goods.
A multi-agency effort for justice and the filing showed that Castelloso used Bitcoin profits to obtain 30,000 ether during Ethereum's initial coin offering (ICO) in 2014. Along with 30,000 Ethereum Classic in 2016. It is worth noting that cryptocurrencies obtained through these illegal means are now subject to confiscation.
Castelloso, who is currently serving a 20-year prison sentence for drug distribution, was... He made plans to evade taxes and transfer 30,000 ether abroad while in prison. However, US authorities uncovered these plans through recorded prison phone calls in 2021 and confiscated cryptocurrencies linked to his drug trafficking.
At the same time, this confiscation action is the result of a collaborative effort between several agencies. Including the FBI's Virtual Assets Unit, Homeland Security Investigations, and local law enforcement.
