The US Department of Justice (DOJ) announces a plan to seize millions of dollars worth of crypto allegedly obtained from the sale of illegal narcotics.
In a new press release, the DOJ says it has filed a forfeiture suit against $54 million in crypto assets traced to an illegal drug ring.
According to the DOJ, Christopher Castelluzzo, who is currently behind bars, conspired with others to sell illegal substances from 2010 to 2015.
He allegedly converted his illicit earnings into digital assets – including 30,000 Ether in 2014 during Ethereum’s initial coin issuance – the same tokens the government wants to seize. The villain also collected 30,000 Ethereum Classic (ETC) in 2016 and used the ETC stack to buy other crypto assets.
During his captivity, the government says Castelluzzo tried to avoid taxes by moving his ETH, which had increased in value to $54 million since the time he bought it, to another country.
However, authorities learned of his plot by listening to a telephone conversation. With government intervention, the DOJ is now taking steps to officially seize the crypto assets linked to the crimes.
As stated by United States Attorney Philip R. Sellinger in the press release:
“The civil action we are pursuing today seeks to recover millions of dollars in cryptocurrency that the defendant allegedly obtained from the sale of pharmaceuticals. Whether it is as simple as bags of cash or as sophisticated as cryptocurrency, we will take the steps necessary to seize the financial profits suspects derive from criminal activity.”
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Featured image: Shutterstock/Natalia Siiatovskaia
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