Texas Drug Ring Sentenced for Processing $50K Worth of Cryptocurrency Monthly in a Money-Laundering Scheme
A Texas-based drug ring consisting of six individuals has been handed down sentences for their involvement in a dark web drug operation that successfully laundered up to $50,000 per month using cryptocurrency. Operating under the alias “Loverbois,” the group was responsible for the distribution of approximately 12 kilograms of methamphetamine. Their operations, spanning from July 2019 to December 2020, involved fulfilling around 20 drug orders per day. Following a thorough federal investigation, which led to the dismantling of the network, sentences for the convicted individuals ranged from probation to 84 months behind bars.
Texas Dark Web Drug Ring Receives Sentences for Utilizing Cryptocurrency to Launder Proceeds
The U.S. Attorney’s Office for the Southern District of Ohio recently revealed that six individuals connected to a dark web methamphetamine trafficking enterprise based in Texas have been sentenced. The group, operating under the name “Loverbois,” distributed nearly 12 kilograms of methamphetamine, cunningly camouflaging the substance as Adderall pills. To launder their ill-gotten gains, the drug traffickers relied on cryptocurrency transactions between July 2019 and December 2020.
Court documents disclosed that “the defendants sold at least 11.98 kilograms of methamphetamine in pill form and laundered between $15,000 and $50,000 each month with the aid of cryptocurrency.” With an average of 20 drug orders daily, the Loverbois utilized cryptocurrency to carry out their money-laundering activities. The court documents also detailed the involvement of Phung, who played a pivotal role in the operation:
“Court documents detail that Phung created and ran the Loverbois account(s) for much of the conspiracy period. He took orders online and obtained pills from Tran and Guzman. Phung also coordinated the receipt of cryptocurrency in exchange for the pills and laundered those proceeds.”
One of the key figures within the group, John Dang, was responsible for packaging and money laundering. According to court records:
“Dang packaged pills for shipment and delivery and helped move and launder cryptocurrency. Dang laundered approximately $15,000 each month.”
These sentences, ranging from probation to 84 months of imprisonment, were delivered as part of an investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). Multiple agencies, including the FBI, DEA, and U.S. Postal Inspection Service, collaborated to dismantle various drug trafficking and money-laundering syndicates.
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