New York State Holds First Crypto Money Laundering Case
The New York State is witnessing a case that involves millions of Bitcoin, as well as Western Union payments. Interestingly, this is going to be the state’s very first conviction when it comes to crypto money laundering.
Laundering $2.8M in BTC
The Manhattan District Attorney’s Office recently made an announcement, suggesting that Callaway Crain and Mark Sanchez, the defendants, have laundered at least $2.8 million. The individuals, both of whom aged 35 years old, reportedly obtained the money via sales of controlled substances carried out online.
Between 2013 and 2018, the defendants were selling steroids and other drugs, with Viagra being one, across the country through their own site called “NextDayGear.” Apparently, the two also sold these items on the dark web, allowing them to gain massive profits.
As a matter of fact, Crain and Sanchez managed to sell more than 10,000 packages and even accepted payments in both cryptos and fiat currency. The process of obtaining these payments was made via Western Union, which they also laundered later one.
Customers reportedly paid using BTC, while the defendants laundered all proceeds through one or more “intermediary” crypto wallets. And by doing so, they were able to obfuscate the source of the funds with ease. As for the case of Bitcoin, it was subsequently converted to U.S. dollars through the use of a crypto exchange platform. This was done prior to depositing the cash to their respective bank accounts.
Laundering Western Union Payments
Western Union payments were also laundered, a process made possible by using false identities. The two even utilized international wire transfers from receivers living outside the United States.
The individuals are deemed guilty and will be facing a jail term of between 2.5 and 7.5 years. The sentencing of the duo, on the other hand, is going to take place come July 12.
According to Cyrus R. Vance Jr., the Manhattan District Attorney, these individuals “raked in crypto and cash” via their own full-service site that is designed to sell prescription-free counterfeit steroids. Even more so, the two are said to be selling other controlled substances to their customers in all 50 states.
Vance assured the public that his office has the ability to go after online drug sellers in New York. And even if these people tend to operate in the “hidden corners of the dark web,” his office has the tools and resources to shut their business down.