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Six individuals have reportedly been charged with money laundering of around $50,000 on a monthly basis in crypto. These people were associated with a ring in Texas that did drug trafficking. The ring was called “Loverbois,” which sold approximately 12 kilograms of methamphetamine and operated nearly 20 drug orders every day between July 2019 and December 2020. A federal investigation was carried out, which led to probation and 84 months in prison.
Dark Web Drug Trafficking and Money Laundering
The U.S. Attorney’s Office for the Southern District of Ohio declared that these individuals would be sentenced as they were also indulged in a dark web methamphetamine operation. The group was working from Texas and concealed methamphetamine as Adderall pills and employed crypto to transfer their profits between July 2019 and December 2020, as reported.
Court documents stated: “The defendants sold at least 11.98 kilograms of methamphetamine in pill form and laundered between $15,000 and $50,000 per month using cryptocurrency.”
Phung was one of the main runners of the group and majorly orchestrated the operations. He made and managed the Loverbois accounts, accepting orders online and getting the methamphetamine pills from his partners Tran and Guzman. “Phung also coordinated the receipt of cryptocurrency in exchange for the pills and laundered those proceeds,” the court filings said. He was responsible for a big part of the scheme, making sure that the selling of drugs and transfers of money were done without any issues.
Another important person in the operations was John Dang. He was trusted with packing the drugs for delivery and laundering the illicit funds. Dang moved almost $15,000 per month through crypto transfers. “Dang packaged pills for shipment and delivery and helped move and launder cryptocurrency,” court filings said, reflecting his notable part in both the distribution and the laundering of drug funds.
Multi-Agency Collaboration to Dismantle the Illicit Ring
The members found linked to the Loverbois group were sentenced after an operation by the Organized Crime Drug Enforcement Task Force (OCDETF). This multi-agency investigation comprised cooperation from the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the U.S. Postal Inspection Service. The task force was directed towards unveiling both drug trafficking and money laundering networks.
The sentences included probation for less active members to 84 months in prison for major actors like Phung and Dang. These sentences demonstrate the gravity of their association with money laundering and moving methamphetamine.
Experts state that money laundering through crypto and its means has become very common due to the anonymous nature of crypto transactions. This gives launderers and tricksters an edge in utilizing this platform.
Court records state, “The defendants laundered between $15,000 and $50,000 per month using cryptocurrency.” The digital currency system enabled the group activities to move huge amounts of money without raising an alarm.
Conclusion
The conviction of the six members of the Loverbois drug organization shows the increasing inclination of criminals to use crypto for money laundering. By moving nearly $50,000 each month in crypto, the ring was able to successfully hide its funds from illicit drug selling. This case showcases how digital assets are so prone to be used illegally for criminal operations and how a robust regulatory and monitoring system is needed in the crypto arena to restrict such malicious activities.
The partnership between federal agencies, in this case, shows the significance of multi-agency collaborations and operations in combatting the twofold menace of drug trafficking and money laundering, particularly as criminals take to new technologies such as cryptocurrency. Learn more about crypto updates with TurkishNYRadio.
