<img src="https://cryptoslate.com/wp-content/uploads/2023/11/ethereum-doj.jpg” />
The assets in question were traced back to Christopher Castelluzo, who conducted narcotics operations from 2010 to 2015. While his illicit activities began in 2010, Castelluzo only transitioned to using bitcoin (btc) for darknet narcotics transactions in 2013.
Castelluzzo is currently serving concurrent 20-year federal and state prison sentences for drug distribution convictions.
30k eth purchased in ICO
What is particularly noteworthy is that Castelluzo initially acquired the 30,000 eth during his Initial Coin Offering (ICO) in July 2014, using 15 btc from his illegal narcotics business. At the time, 30,000 eth was worth just $9,000, but its current value has risen to over $54 million at press time.
In addition to ethereum, Castelluzo also obtained 30,000 ethereum Classic (ETC) in 2016, which he used to acquire other cryptocurrencies.
After his arrest and imprisonment, Castelluzzo attempted to launder the 30,000 eth while in prison. However, US authorities thwarted this plan by intercepting recorded prison phone calls in 2021, ultimately leading to the seizure of the assets.
United States Attorney Philip R. Sellinger stated:
“The civil action we are taking today seeks to recover millions of dollars in cryptocurrency, which the defendant allegedly obtained from the sale of drugs. “Whether it is as simple as bags of cash or as sophisticated as a cryptocurrency, we will take necessary steps to seize the financial gains that defendants derive from criminal activity.”
James E. Dennehy, the FBI special agent who oversaw the case, emphasized that the forfeiture action serves as a warning to others involved in criminal activity. He added that the government is committed to holding criminals accountable for their actions.
