Crypto enabled money laundering
Picture Credits: Tookitaki

US Officials Charge California Resident With Using Bitcoin to Launder $5.3M in Drug Proceeds

U.S. authorities charged California inhabitant John Khuu with trick to commit tax evasion and the unlawful importation of a controlled substance on Friday, claiming he sold fake medications for bitcoin.


Khuu was captured in August 2022, after fantastic juries in Texas and California returned the prosecutions in May and August, separately, a public statement said.

As per one of the arraignments, Khuu purportedly made merchant accounts on various dim web commercial centers to sell the phony pills and other controlled substances starting in January 2020. Clients “typically” utilized bitcoin (BTC) to buy these medications, however the prosecution proposed other cryptographic forms of money may likewise have been utilized.


As indicated by the prosecution, Khuu is affirmed to have contrived with others to wash the returns of his medication dealing association through cryptographic money. The respondent supposedly disseminated fake drug pills and other controlled substances on dim web markets to clients across the US. Clients paid for their buys by moving digital money, typically Bitcoin, from their dim web market client records to one of Khuu’s merchant accounts. Khuu and his co-backstabbers exchanged Bitcoin for U.S. cash and washed the returns through many exchanges and many monetary records.


Over the span of the trick, Khuu and his co-backstabbers supposedly washed more than $5,350,000.00.


Khuu likewise supposedly utilized an organization of monetary establishments to wash the assets, including Bank of America, Citibank, JPMorgan Pursue and Wells Fargo. The prosecution claimed he made various phony records at these banks.


The arraignment proceeded to depict a few exchanges Khuu supposedly led as a feature of his endeavors to change over bitcoin into cash. On the whole, he purportedly managed just shy of 500 exchanges attached to the offer of around 620 BTC.


Khuu postponed his right to a confinement hearing, as indicated by one more court documenting delivered on Oct. 6.