US seizes $54M worth of Ethereum linked to illegal narcotics business

The assets successful question were traced backmost to Christopher Castelluzo, who conducted narcotic operations from 2010 to 2015. While his illicit activities began successful 2010, Castelluzo lone transitioned to utilizing Bitcoin (BTC) for narcotic transactions connected darknets successful 2013.

Castelluzzo is presently serving concurrent 20-year national and authorities situation sentences for cause organisation convictions.

30k ETH bought astatine ICO

What is peculiarly noteworthy is that Castelluzo initially acquired the 30,000 ETH during its Initial Coin Offering (ICO) successful July 2014, utilizing 15 BTC stemming from his amerciable narcotics business. At the time, the 30,000 ETH was worthy a specified $9,000, but its existent worth has surged to much than $54 cardinal arsenic of property time.

In summation to Ethereum, Castelluzo besides obtained 30,000 Ethereum Classic (ETC) successful 2016, which helium utilized to get different cryptocurrencies.

Subsequent to his apprehension and incarceration, Castelluzzo attempted to launder the 30,000 ETH portion successful prison. However, U.S. authorities foiled this strategy by intercepting recorded situation telephone calls successful 2021, yet starring to the seizure of the assets.

U.S. Attorney Philip R. Sellinger stated:

“The civilian enactment we are taking contiguous seeks to retrieve millions of dollars of cryptocurrency, which the suspect allegedly obtained from cause sales. Whether it’s arsenic elemental arsenic bags of currency oregon arsenic blase arsenic cryptocurrency, we volition instrumentality the steps indispensable to prehend fiscal gains defendants get from transgression activity.”

James E. Dennehy, the FBI Special Agent overseeing the case, emphasized that the forfeiture enactment serves arsenic a informing to others progressive successful transgression activities. He added that the authorities is committed to holding criminals accountable for their actions.