CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,253.00
  • ethereum
    ETH$1,598.19
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Darknet Drug Dealer Accused of Laundering $136M Worth of Bitcoin

    Darknet Drug Dealer Accused of Laundering $136M Worth of Bitcoin

    Author: Dimitar Dzhondzhorov

    Last Updated Aug 14, 2021 @ 07:59

    Ryan Farace supposedly laundered $136 million in bitcoin while serving his drug-dealing sentence in federal prison.

    The American authorities have accused the Baltimore resident – Ryan Farace – of laundering
    2,933 BTC between October 2019 and April 2021. Interestingly, the man was sent to jail in 2018 and has presumably executed the criminal activities from behind bars.

    ‘Xanaxman’ Dealing with Bitcoin Even from Prison

    According to The Baltimore Sun, officials of the state of Maryland had pressed charges against Ryan Farace – also know as “Xanaxman” – for laundering 2,933 BTC over the period of less than three years. As per today’s prices, this amount is more than $136 million.

    The criminal and his father are currently serving a 57-month federal prison sentence for selling Alprazolam – a sedative to treat anxiety and panic disorders.

    Farace operated on the notorious Dark Web, but the police caught him in 2018. As part of his sentence, back then, he had to forfeit $5.6 million that he generated out of his illicit activities. He also had to give away his crypto holdings of 4,000 BTC.

    The investigators are still unaware whether the aforementioned 2,933 coins are part of the initial 4,000 BTC. They noted that Farace might have possessed even more digital assets that the government did not know about in the first place.

    ADVERTISEMENT

    The 37-yeard-old convict sought compassionate release in 2020, citing bad health conditions and the COVID-19 pandemic. The officials, though, denied his request, and he remained in prison.

    The Head of Bitcoin Fog Laundered $336 Million in Bitcoin

    It’s worth noting that the aforementioned case is not an isolated incident. As CryptoPotato reported in April, the Federal Service in the USA arrested Roman Sterlingov – the leader of the notorious bitcoin anonymizer Bitcoin Fog – on suspicion of laundering nearly $336 million in the digital asset over the last 10 years.

    The Russian-Swedish resident supposedly offered protection services to users who wanted to keep their crypto assets under maximum security. For this, he charged commissions ranging between 2% and 2.5%.

    Per the IRS calculations, the perpetrator pocketed the funds and used them to establish Bitcoin Fog’s server. These actions raised concerns, and the following investigation revealed Sterlingov’s criminal operations over the last decade.

    Sarah Meiklejohn – a computer scientist at the University College of London – praised this “follow the money” technique that the investigators used:

    “With blockchain analytics, the thing we say over and over is that all this activity is on this ledger forever, and if you did something bad 10 years ago you can be caught and arrested for it today.”

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • dark_web_monero_cover
      Trustless XMR-BTC Swaps Launch on Monero's Mainnet
    • China. Source: Forbes
      China’s Police Arrests Over 1,000 Crypto Traders on Fraud and Money Laundering Charges
    • bitcoincrash
      Bitcoin Crashes Below $30K For The First Time Since January 2021
    Tags: Bitcoin Money Laundering
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Dimitar Dzhondzhorov
    More posts by this author

    Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.

  • bitcoin
    BTC$23,253.00
  • ethereum
    ETH$1,598.19
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!