FEDS: United States Forfeits Millions in Cryptocurrency Used to Launder Illicit Dark Web Proceeds
To comply with FTC regulations, all links could lead to commissions paid to the publisher. Please see Advertising Disclosure in sidebar.
MIAMI, FL – In one of the largest cryptocurrency forfeiture actions ever filed by the United States, federal prosecutors in the Southern District of Florida successfully forfeited approximately $34 million worth of cryptocurrency tied to illegal Dark Web activity.
According to the U.S. Government’s civil forfeiture complaint, law enforcement agents identified a South Florida resident raking in millions by using an on-line alias to make over 100,000 sales of illicit items and hacked online account information on several of the world’s largest Dark Web marketplaces. For example, the South Florida resident sold hacked online account information for popular services such as HBO, Netflix, and Uber, among others, and accessed the Dark Web by utilizing the TOR (The Onion Router) Network. The Onion Router Network is a special network of computers distributed around the world designed to anonymize a user’s internet traffic by concealing computers’ IP (Internet Protocol) addresses.
As detailed in the complaint, records analyses revealed that the South Florida resident utilized so-called “tumblers” and illegal Dark Web money transmitter services to launder one cryptocurrency for another—a technique called “chain hopping”—in violation of federal money laundering statutes. A tumbler is a Dark Web mixing service that pools together multiple cryptocurrency transactions. Then, the tumbler distributes the cryptocurrency to a designated cryptocurrency wallet at random times, and in random increments. The goal is to obscure the original source of funds. Law enforcement agents seized various cryptocurrency wallets associated with the illegal Dark Web conduct.
This forfeiture action is the result of Operation TORnado, a joint investigation that stems from the ongoing efforts by OCDETF, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
FREE DIGITAL SUBSCRIPTION: GET ONLY 'FEATURED' STORIES BY EMAIL
Big Tech is using a content filtering system for online censorship. Watch our short video about NewsGuard to learn how they control the narrative for the Lamestream Media and help keep you in the dark. NewsGuard works with Big-Tech to make it harder for you to find certain content they feel is 'missing context' or stories their editors deem "not in your best interest" - regardless of whether they are true and/or factually accurate. They also work with payment processors and ad-networks to cut off revenue streams to publications they rate poorly by their same bias standards. This should be criminal in America. You can bypass this third-world nonsense by signing up for featured stories by email and get the good stuff delivered right to your inbox.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office; George L. Piro, Special Agent in Charge, FBI Miami; Deanne L. Reuter, Special Agent in Charge, DEA Miami; Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, and Joseph W. Cronin, Inspector in Charge, Miami Division, U.S. Postal Inspection Service (USPIS), made the announcement. IRS-CI, FBI, DEA, Homeland Security Investigations (HSI), and U.S. Postal Inspection Service (USPIS) investigated the case.
Asset Forfeiture Division Assistant U.S. Attorney Mitch Hyman and Deputy Chiefs Nicole Grosnoff and Nalina Sombuntham prosecuted this asset forfeiture action. Monique Botero, Chief of the Southern District of Florida’s International Money Laundering and Narcotics Section, is the lead prosecutor on Operation TORnado.