The U.S. Department of Justice has announced the seizure of 30,000 Ether worth over $54 million that was allegedly used for illegal drug distribution on darknet markets.
The Ethereum">Ethereum stash was traced back to Christopher Castelluzzo, who was involved in narcotics operations from 2013 to 2015. He had acquired the ETH with Bitcoin earned selling drugs online.
Castelluzzo tried laundering the funds while in prison but was caught on recorded calls. The seizure illustrates growing crypto use in organized crime as well as enhanced law enforcement tactics.
The case began in 2010 with traditional drug trafficking. But as Castelluzzo transitioned to darknet markets in 2013, he began transacting in Bitcoin and later Ethereum from its 2014 ICO.
Authorities were able to identify and seize the cryptocurrency profits even after sophisticated laundering attempts. The bust serves as a warning to criminals that illicit crypto gains are not beyond the reach of the law.
#cryptocrime #drugtrafficking #darknet #DOJ #lawenforcement
