US Confiscates IDR 844 Billion Crypto From Drug Sellers

JAKARTA - The US Prosecutor's Office in New Jersey has filed a civil confiscation lawsuit against three members of a New Jersey-based drug trafficking group. All three are suspected of selling drugs to cryptocurrencies on the dark web since 2013 and raising funds of around US$54 million (Rp844 billion) in various cryptocurrencies.

According to a CryptoPotato report, the three defendants are Christopher Castelluzzo, Luke Atwell, and Brian Krewson. Castelluzzo and Atwell are currently serving 20 years in prison for their involvement in drug trafficking, respectively. Krewson is a friend of theirs who reportedly manages their assets for now.

According to the filing, Castelluzzo tried to communicate with members of his group while in prison to move the funds to other countries to avoid taxes. Luckily, FBI agent James Dennehy smelled the plan, then confiscated the funds.

"Our confiscation of $54 million should be a lesson for those who mistakenly believe that we cannot track down their illicit activities or the proceeds of their crimes. We will succeed in holding all criminals accountable in the open, with consequences in the real world," Dennehy said.

Although the total catch of $54 million is significant, this figure does not reflect the true amount of illegal substances actually sold by the three. According to law enforcement, they have been selling drugs to crypto on various dark web markets since 2013.

Castelluzzo is reportedly still keeping 0.49 BTC, most of the proceeds from illegal trading are reinvested into other cryptocurrencies. While their investment value grew on a large scale. For example, the largest part of the confiscated funds was in the form of Ether, around 30,000 ETH.

These coins were purchased on Ethereum's early ICO. Further investment was also carried out on Chainlink, Polkadot, Algorand, and eight other cryptocurrencies (excluding BTC and ETH). US Prosecutor Phillip R. Seller said that the US justice system would continue to track down the results of illegal activities in any form.

"The civil action we took today aims to recover millions of cryptocurrency dollars, which the defendant allegedly obtained from drug trafficking. Whether it's as simple as a bag containing cash or as sophisticated as a cryptocurrency, we will take the necessary steps to confiscate the financial benefits the defendant gets from criminal activity," said Seller.