Two online drug dealers found guilty of laundering $ 2.8 million through BTC


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May 20, 2019
In the state of New York for the first time the defendants were found guilty of money laundering through cryptocurrency.

The Manhattan District Prosecutor's Office announced on Wednesday that the accused Callaway Crain and Mark Sanchez laundered $ 2.8 million, earned through the sale of substances through the Internet, the free distribution of which is prohibited by law.

Between 2013 and 2018, two men sold steroids and other medicines, including Viagra, in the United States through their NextDayGear website and on darknet. They sold over 10,000 products and accepted payments in cryptocurrency and dollars through Western Union. Then the criminals laundered the funds received.

According to the prosecutor, clients usually paid for purchases in bitcoins, and the defendants laundered revenues through one or more “intermediary” cryptocurrency wallets to hide the source of funds. Then BTC was converted into US dollars using a cryptocurrency exchange, before money was transferred to their bank accounts.

Money received through Western Union was laundered through the use of fake IDs or international bank transfers from recipients outside the United States. The defendants pleaded guilty and will be sentenced to prison terms ranging from 2.5 to 7.5 years at a hearing on July 12. Manhattan District Attorney Cyrus R. Vance Jr. (Cyrus R. Vance, Jr) said:

“The defendants made millions of dollars on their website, where they sold counterfeit steroids and other controlled substances without a prescription to clients in all 50 states. Online drug dealers who do business in New York should take note: whether you work in public or in the dark corners of the darknet, my Office has the skills and resources to track down the source of funds, close your business and hold you accountable "- warned Vance.

Last week, the office of the same prosecutor charged three people with drug trafficking and cryptocurrency laundering for $ 2.3 million using prepaid debit cards and cash withdrawals at ATMs in Manhattan and New Jersey. In addition, in the first half of April, a California trader was sentenced to two years in prison for violating AML rules.
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