Silk Road Drug Dealer Accused of Laundering Millions of Dollars Through BTC

United States Attorney for the Southern District of New York, Geoffrey S. Berman, announced the arrest of an alleged drug dealer on darknet Hugh Brian Haney.

According to a press release, Haney was accused of money laundering. He allegedly used cryptocurrency to launder more than $ 19 million in profits from the sale of drugs on the now-defunct market of the dark road Silk Road. Berman stated:

“Today’s arrest should be a warning for drug dealers on the darknet. Let them know that they cannot always remain anonymous, especially when they are trying to legalize their illegal incomes. ”

Special Agent Angel M. Melendez (Angel M. Melendez) noted that after the Silk Road was closed in 2013, cybercriminals began to look for other ways to “continue their criminal activities and, more importantly, launder illegally obtained digital currency.” Allegedly, Haney was one of these criminals. Melendez concluded:

“Special agents of national security used analytics from the blockchain to detect and confiscate bitcoins worth $ 19 million and bring Haney out of the darknet so that he would appear in court in the Southern District of New York.”

The press release states that Haney worked on Silk Road under the pseudonym Pharmville. US law enforcement agencies reportedly made multiple controlled purchases of drugs, including oxycontin, from Pharmville in 2011 and 2012. These purchases resulted in permission to search for Haney’s home in Ohio in 2018.

The investigation revealed evidence that Haney was one of the main traders or administrator of the Pharmville account. In 2017 and 2018, Haney reportedly transferred his BTC to a cryptocurrency exchange. In a correspondence with the exchange, Haney claimed that he obtained cryptocurrency through mining and from individuals he met on the Internet.

When Haney exchanged his cryptocurrency for a fiat currency and transferred it to a bank account, the funds were withdrawn in accordance with the court-sanctioned arrest warrant from the bank account.

In April, three drug dealers in the darknet were accused
in laundering millions of dollars through BTC. Last year, European police seized
the traders of the darknet cryptocurrency of € 5.7 million.