Bitcoin and money laundering: California justice puts its nose in a drug case

Back to the past – It goes without saying that the expansion of the young cryptocurrency Bitcoin (created in 2009) coincided with its use to buy goods or services on the “ dark net“. Especially for drug trafficking via the Silk Road site. Its founder is still behind bars in the USA. Bitcoin has struggled to shed that image ever since, even 10 years later. However, illicit transactions on its network represent an infinitesimal part of the activity.

Justice monitors Bitcoin

A few days ago, the DOJ (Department Of Justice) announced that a Californian jury had indicted John Khuu, involved in a dark case of crypto, drugs and money laundering. Arrested last August, Khuu will await his trial in prison.

The DOJ memo mentions alleged illegal activities of California resident. According to this, John Kuu is suspected of having taken part in ” a conspiracy with third parties to launder his cryptocurrency trafficking business“, in this case Bitcoin.

He is accused of selling and distributing fake medical prescriptionsof the counterfeit drugs as well as other controlled substances » on market places in the dark web.

Several million laundered via Bitcoin

According to the elements revealed by the courts, his customers paid him in cryptocurrency, most of the time in bitcoins directly from his hidden market places. Khuu and his associates then exchanged these dollar cryptos before laundering his jackpot. All through hundreds of transactions and dozens of accounts.

This illicit business is said to have generated close to $5.35 million. If found guilty, John Khuu faces up to 20 for each charge.

He is currently being prosecuted for “ conspiracy to launder money ” also for ” illegal importation of controlled substances“.

As a reminder, a grand jury indictment does not constitute proof of guilt. John Khuu is innocent until (judicial) proof to the contrary. The US Secret Service is monitoring this case very closely according to the DOJ note.

Safeguard Your Cryptos by storing them on a Ledger key. Boost for your purchasing power, shipping costs, it’s a gift (commercial link).

John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button