The U.S. Division of Justice (DOJ) has indicted California-based John Khuu for allegedly laundering $5.4 million in proceeds from drug trafficking through the use of Bitcoin.
In line with the fees, Khuu bought counterfeit pharmaceutical medication and managed substances on darkish net markets. He acquired BTC as fee from clients for his or her purchases.
To transform the funds for fiat, Khuu and his accomplices created dozens of accounts with prime U.S. banks together with Citibank, Financial institution of America, and JPMorgan Chase.
The accused allegedly laundered about $5.4 million price of BTC over the interval of his operation.
Khuu was arrested on Aug. 19, 2022, by the DOJ. He’s at the moment dealing with a two count-charge for conspiracy in cash laundering and illegal importation of managed substances. If confirmed responsible, he may danger spending as much as 40 years in imprisonment.
Crypto-related laundering on the decline
Situations, the place crypto was used at nighttime net market, have painted the business in a dangerous mild earlier than authorities. In 2020, the DOJ busted Ohio-based Larry Harmon for allegedly laundering over $300 million utilizing Bitcoin.
In latest occasions, the narrative is altering for good. A Chainanysis report confirmed that in 2021, solely about 0.05% of all crypto transactions have been linked to cash laundering, in comparison with 5% laundered via fiat forex.
