NEWARK, N.J. – The U.S. Lawyer’s Workplace filed a civil forfeiture motion right now to get better $54 million of cryptocurrency that it beforehand seized and is traceable to the proceeds of an unlawful narcotics distribution scheme working in and round New Jersey, U.S. Lawyer Philip R. Sellinger introduced.
“The civil motion we’re taking right now seeks to get better thousands and thousands of {dollars} of cryptocurrency, which the defendant allegedly obtained from drug gross sales. Whether or not it’s so simple as luggage of money or as subtle as cryptocurrency, we’ll take the steps essential to seize monetary positive aspects defendants acquire from legal exercise.”
U.S. Lawyer Philip R. Sellinger
“Many criminals use cryptocurrency on the darknet to function away from the prying eyes of regulation enforcement,” FBI – Newark Particular Agent in Cost James E. Dennehy mentioned. “Our forfeiture motion of $54 million ought to function a lesson to those that mistakenly imagine we won’t hint their illicit habits or their ill-gotten proceeds. We’ll efficiently maintain all criminals accountable within the open, with actual world penalties.”
In line with the criticism:
From 2010 to 2015, Christopher Castelluzzo and others conspired to promote varied narcotics. Round 2013, Castelluzzo and his conspirators started to promote narcotics on darknet websites in change for Bitcoin. Castelluzzo then used a number of the Bitcoin he had earned from narcotics gross sales to buy 30,000 Ether in Ethereum’s Preliminary Coin Providing in July 2014. Castelluzzo additionally obtained an quantity of an extra cryptocurrency – 30,000 Ethereum Basic – in 2016. Castelluzzo used the extra cryptocurrency to buy varied different cryptocurrencies. The criticism seeks the forfeiture of all the cryptocurrency Castelluzzo obtained on account of his narcotics gross sales.
Castelluzzo is at the moment serving concurrent 20-year federal and state jail sentences for drug distribution convictions. Whereas Castelluzzo was incarcerated on account of these convictions, and as Ethereum elevated in worth, Castelluzzo plotted from jail to keep away from taxes and to maneuver the 30,000 Ether exterior of america. Earlier than he may achieve this, nevertheless, america discovered of Castelluzzo’s efforts to launder the cryptocurrency via recorded jail phone calls in 2021, intervened, and seized Castelluzzo’s cryptocurrency holdings traceable to his drug trafficking crimes.
At this time, the worth of the 30,000 Ether is roughly $54 million.
U.S. Lawyer Sellinger credited members of the FBI’s Digital Property Unit (VAU) underneath the path of Assistant Director Luis Quesada of the Monetary Crimes Part of the Prison Investigative Division; FBI Newark Atlantic Metropolis Resident Company underneath the path of Particular Agent in Cost James E. Dennehy; the FBI-Denver Area division, underneath the path of Particular Agent in Cost Mark D. Michalek; Homeland Safety Investigations Newark, underneath the path of Performing Particular Agent in Cost Robert Kurtz; the New Jersey Lawyer Normal’s Workplace, underneath the path of Lawyer Normal Matthew J. Platkin; the New Jersey Particular Investigation Division underneath the path of Timathy Gonzalez; and the Colorado Springs, Colorado, Police Division, underneath the path of Chief Adrian Vasquez, with the investigation.
The federal government is represented by Assistant U.S. Attorneys Robert Frazer of the Organized Crime and Gangs Unit, DeNae M. Thomas of the Well being Care Fraud Unit, and Jordan M. Anger of the Asset Restoration and Cash Laundering Unit.
The accusations within the criticism, and the outline of the criticism, represent solely allegations.
