The United States Drug Enforcement Administration (DEA) has seized the largest haul of cryptocurrency from an illegal network involved in selling narcotics through the dark web.
According to the Department of Justice (DoJ), in a statement released on January 26, the amount totaling $150 million in digital assets was confiscated from an operation run by an Indian national identified as Banmeet Singh.
Singh pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering.
His guilty plea marked the culmination of an investigation that uncovered a multi-million-dollar drug enterprise that utilized dark web marketplaces such as Silk Road 1, Silk Road 2, Alpha Bay, Hansa, and others.
“Today’s guilty plea, which includes forfeiture of approximately $150 million in cryptocurrency, demonstrates that the Justice Department will hold criminals who violate US law accountable no matter how they conceal their activity, ” said US Attorney Kenneth L. Parker.
Nature of operation
From mid-2012 to July 2017, Singh’s illicit enterprise comprised at least eight distribution networks operating within the United States. These networks were strategically dispersed across multiple states, encompassing regions such as Florida, Maryland, New York, and Washington.
Court documents revealed that Singh operated vendor marketing sites under the pseudonym ‘Liston,’ offering a range of controlled substances, including fentanyl, LSD, ecstasy, Xanax, Ketamine, and Tramadol. Customers paid for these substances using cryptocurrency, enabling Singh to amass a substantial fortune.
Notably, the 40-year-old was arrested in London in April 2019, with US authorities securing his extradition in 2023.
Singh orchestrated his operation by establishing online storefronts where customers placed orders and completed cryptocurrency transactions. Subsequently, he coordinated the transportation of these illicit substances, sourced mainly from European suppliers, into the United States, utilizing postal services and alternative delivery methods.
This legal action is a component of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, employing a collaborative approach across multiple agencies.
It’s worth noting that various US government entities have been actively involved in cracking down on cryptocurrencies used to facilitate illegal activities. For instance, as reported by Finbold back in 2022, the government seized a record $3.36 billion worth of Bitcoin (BTC) linked to the Silk Road dark web fraud.