American dealer on the dark web and a Costa Rican pharmacist have been accused of trafficking illegal drugs worth around $ 270 million in Bitcoins.
According to a report by the US Department of Justice, the duo was indicted on Tuesday by a federal grand jury in Washington. The report highlighted the efforts of law enforcement agencies to target illegal cryptocurrency transactions on the darknet.
Trafficks on the dark web for $ 270 million
According to a report, David Pate, 44, allegedly sold opioid pills sent to him by Jose Hou, 38, hidden in rumba shakes. The drug was advertised in various dark web markets, including the now defunct Silk Road and AlphaBay, between 2013 and 2018.
Customers allegedly paid Pate over 23,903 Bitcoins (now worth about $ 270 million) for drugs that included OxyContin painkillers and morphine tablets.
A total of seven charges were filed against Pate and Hou. These include: conspiracy to distribute controlled substances, distribution of controlled substances, conspiracy to import controlled substances, conspiracy to launder money and money laundering.
“These allegations warn drug traffickers around the world that they cannot hide their illegal activities from the vigilance of US law enforcement under the guise of darknet or virtual currency,” said incumbent US prosecutor Michael Sherwin.
Law enforcement focuses on the crypto and darknet
Authorities have recently stepped up their efforts to detect crime on the Dark Web and will not be deterred by anonymous cryptocurrency transactions. Blockchain analytics companies such as Chainalysis and Elliptic have joined forces to assist law enforcement efforts.
Users pay for goods on darknet markets in Bitcoins or other cryptocurrencies, such as the privacy coin, Monero. According to Chainalysis, more than $ 800 million in cryptocurrencies were sent to darknet markets in 2019.
However, bitcoin transactions are publicly available and can be associated with a true identity. In addition, most crypto exchanges require KYC, which means that their customers must verify their identities.
Ross Ulbricht was identified as the owner and operator of the Silk Road market after police monitored bitcoin transactions in the wallet he owned. He is currently serving two life sentences in prison.
Last year, three drug suspects were arrested and allegedly laundered more than $ 2.3 million on the Dark Web. Their activities were also discovered as a result of blockchain analysis.
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