An American allegedly laundered 2,933 Bitcoin from a prison cell. That’s more than $ 140 million at current prices.
Millions made with fake tranquilizers
He was already in jail for selling drugs on the dark web – and thought to himself that he could use the time “sensibly”. Instead of ceasing his illegal business, he reportedly simply transferred her to the prison cell.
The 37-year-old Ryan Farace came there in 2018 because he had illegally traded in counterfeit tranquilizers under the name “Xanaxman”, which, how could it be otherwise, could only be paid for with Bitcoin. According to the prosecutor, Farace is said to have used a professional pill press to produce deceptively real fake drugs and sell them on the dark web against BTC. Together with an accomplice, the coins were then washed, according to the prosecutor:
“Farace used pseudonyms to contact a co-conspirator through dark web marketplaces and encrypted messages to exchange Bitcoin he received from his drug trafficking for cash.”
Five years in prison for 920,000 counterfeit pills
In order to disguise the massive cash receipts, Farace and later his accomplice opened mailboxes and private rental letter boxes under false names. The co-conspirator is said to have sent parcels full of dollars to the value of the Bitcoins received to the postal addresses provided by Farace – minus a fee. Farace received millions in cash in the mail – all for the bitcoins from the drug trade. Around 4,000 BTC are said to have come together – the equivalent of more than 140 million dollars.
In the end, Farace was sentenced to nearly five years in prison for selling the total of 920,000 counterfeit pills. And he is reportedly on trial again. Together with his father, he is said to have continued to launder drug money for the past three years. However, investigators still cannot say whether the mentioned 2,933 Bitcoins are among the original 4,000 BTC. Farace may have owned other digital assets that no one knew about.
Interesting detail on the side: Farace watched from prison as his crypto fortune exploded in value. When he began his prison sentence in 2018, the Bitcoin price was still around 4,400 dollars. And then the price explosion followed in 2021.
170 victims, $ 1.4 million damage
A crypto fraud case is also causing a stir in Hong Kong: the local police have just arrested 19 suspected perpetrators who are said to have brought 170 victims for a total of 1.4 million dollars. Nine computers, 128 smartphones, cash, cryptocurrencies and a sports car were confiscated.
The suspects are said to have hired influencers on social media, who in turn persuaded the victims to transfer money to the scammers’ cryptocurrency wallets and bank accounts.
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