The U.S. Attorney’s Office in New Jersey is seeking to recover approximately $54 million worth of oinbase-launches-bitcoin-and-ethereum-futures-for-us-traders">Ethereum cryptocurrency associated with convicted drug dealer Christopher Castelluzzo.
On November 2nd, U.S. Attorney Philip R. Sellinger filed a civil forfeiture complaint targeting the seized fraud-trial">crypto assets. Authorities allege the digital funds are linked to Castelluzzo’s dark web narcotics trafficking operation in New Jersey between 2010 and 2015.
“The civil action we are taking today seeks to recover millions of dollars of cryptocurrency that was used to facilitate illegal activity,” said Sellinger.
According to court documents, Castelluzzo acquired 30,000 Ether during Ethereum’s 2014 ICO and 30,000 Ethereum Classic in 2016. In 2021, while serving a 20-year prison sentence, Castelluzzo attempted to transfer 30,000 Ether abroad to launder criminal proceeds. Authorities intercepted and seized the funds.
“Criminals often use cryptocurrencies on dark web markets thinking they can avoid law enforcement detection,” said FBI Special Agent James E. Dennehy. “But this forfeiture of $54 million shows we can trace illicit crypto transactions and seize these unlawfully obtained assets.”
The former Lake Hopatcong resident is currently serving concurrent federal and state sentences for narcotics distribution.
The action reflects growing concerns over the use of crypto to facilitate illegal activities anonymously. The U.S. government has seized around 200,000 bitcoins linked to cybercrime and darknet markets worth nearly $5 billion, making it one of the largest bitcoin holders globally.
