- Federal authorities seize $54 million in cryptocurrencies linked to drug kingpin Christopher Castelluzzo.
- The seized property embody 30,000 Ethereum tokens obtained by way of unlawful actions.
- Castelluzzo tried to launder the cryptocurrency from jail earlier than legislation enforcement bought him.
U.S. Lawyer Philip Sellinger has introduced that federal legislation enforcement authorities have seized $54 million value of cryptocurrencies linked to Christopher Castelluzzo, the chief of a infamous drug ring primarily based in New Jersey. The seizure marks a big blow to Castelluzzo and his co-conspirators, whose illicit actions spanned from 2010 to 2015.
In keeping with federal officers, a minimum of 30,000 Ethereum tokens have been found in crypto wallets owned by Castelluzzo and his associates. These wallets held the laundered proceeds from their unlawful operations, which concerned the distribution of mail-order cocaine and designer medicine.
Per the criticism, what initially began as an funding of $9,000 in Ethereum (ETH) from their drug proceeds had grown to $54 million. The criticism highlighted that Castelluzzo presently serves concurrent 20-year sentences in each federal and state prisons as a result of drug distribution convictions. Nonetheless, throughout his incarceration, the worth of Ethereum surged.
Subsequently, Castelluzzo hatched a plan whereas in jail to evade taxes and switch his 30,000 Ethereum holdings out of america. Nonetheless, earlier than he may execute this plan, america authorities uncovered his try and launder cryptocurrency by way of recorded jail phone calls in 2021.
In consequence, the authorities intervened and seized Castelluzzo’s cryptocurrency holdings. The report acknowledged that the U.S. authorities seized these cryptocurrencies as a result of their connection to the unique drug trafficking actions.
FBI Newark Particular Agent James Dennehy argued that the profitable forfeiture underscores the federal government’s capability to hint and confiscate the ill-gotten positive factors of people engaged in unlawful actions.
Notably, Castelluzzo and his associates have been apprehended initially as a part of a drug ring that operated by way of darknet platforms like Silk Street and Blue Sky, the place they accepted funds in Bitcoin. The operation was identified for distributing a variety of narcotics, together with cocaine and methylone, sourced from China.
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