DOJ Targets $54 Million Crypto Linked to Narcotics in Seizure Operation
The latest move by the U.S. Department of Justice (DOJ) involves a significant operation aimed at seizing a substantial value of cryptocurrency believed to have originated from the illegal sale of narcotics.
DOJ’s recent announcement signifies an action to claim ownership of approximately $54 million in cryptocurrency assets associated with an alleged illicit drug syndicate.
Sources within the DOJ disclosed details of Christopher Castelluzzo’s involvement from 2010 to 2015 in a conspiracy to traffic illegal substances, which led to his current incarceration.
It’s purported that Castelluzzo converted the profits from these illegal dealings into various digital currencies, notably acquiring a considerable amount of Ether during Ethereum’s initial coin offering in 2014, a stash that the government is targeting for confiscation. Moreover, he amassed a significant sum of Ethereum Classic in 2016, utilizing these assets for further investments in the cryptocurrency realm.
While serving time, Castelluzzo supposedly attempted to circumvent tax obligations by transferring his Ethereum holdings, which had substantially increased in value to reach $54 million, to an offshore location.
READ MORE: Institutional Onslaught: Bitcoin’s ETF Predicament
However, this plan was uncovered when law enforcement intercepted a conversation related to this scheme. Consequently, the DOJ is taking steps to legally seize the cryptocurrency linked to these unlawful activities.
According to a statement by US Attorney Philip R. Sellinger:
“Today’s legal pursuit aims to retrieve millions in cryptocurrency that is suspected to have been derived from the sale of drugs. Whether in traditional currency or in the form of sophisticated digital assets, we remain dedicated to taking necessary measures to confiscate the financial gains resulting from criminal enterprises.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
