The U.S. Department of Justice confiscates crypto worth $34 million tied to operations in illegal dark web activities.
A cryptocurrency forfeiture action filed by federal prosecutors in the Southern District of Florida resulted in the successful seizure of approximately $34 million in cryptocurrency linked to illegal Dark Web activity
This operation makes it one of the largest cryptocurrency confiscations ever in the United States.
Stolen Cryptocurrency
Following the filing of a civil forfeiture complaint with the United States Department of Justice, law enforcement agents singled out a "South Florida resident" using the Dark Web to sell illegal items and hacked accounts for millions of dollars.
The police department also acquired a number of cryptocurrency wallets believed to be linked to illegal Dark Web activity on the internet.
As part of an investigation, it was discovered that the South Florida resident used so-called Cryptocurrency tumblers. A tumbler is service users utilize in mixing cryptocurrency transactions. Tumbler mixes multiple cryptocurrency transactions into a single transaction.
The tumbler then distributes the cryptocurrency to a designated cryptocurrency wallet at random times and in random increments, according to a predetermined algorithm.
The goal is to conceal the identity of the original source of funds. This is usually used for privacy and also money laundering.
This strategy is also known as chain hopping and is deemed under U.S. laws as a violation of federal money laundering statutes.
The Department of Justice did not name the "South Florida resident" who was involved in the sales, and the press release did not state whether the agency intends to file an indictment against him.
Organized Crime Drug Enforcement Task Forces
An investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF), which included federal, state, and local law enforcement agencies, resulted in the successful operation and seized the stolen cryptocurrency. This operation is part of Operation TORnado.
According to CNET,the OCDETF operation was formed to address transnational organized crime. In addition, the OCDETF program's primary mission is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that pose a threat to the citizens of the United States.
Furthermore, OCDETF focuses its partner agencies on priority targets, manages and coordinates multi-agency efforts, and leverages intelligence across multiple investigative platforms, it is able to facilitate complex joint operations.
The charged individual involved in this crime was allegedly using TOR to access dark web marketplaces. This information got into the police authorities and called the operation The Onion Router, or TOR.
US Authorities on Dark Web
The U.S. authorities are seizing operations with crimes involving the Dark Web. As recently reported by CNBC,
Germany's authorities, working in collaboration with American law enforcement, seized and shut down Hydra Market. According to the U.S. Department of Justice, Hydra Market was considered to be the world's largest and oldest darknet marketplace for illegal goods and services.
The DOJ stated that an alleged Hydra Market operator is now being charged by the DOJ with conspiracy to distribute narcotics and conspiracy to commit money laundering. Aside from that, the DOJ added that the German Federal Criminal Police seized cryptocurrency wallets from the market that contained $25 million in bitcoin.
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