The US has charged a dark web drug dealer with laundering $137 million in bitcoin.

Ryan Farace, nicknamed Xanaxman, a dark web drug dealer now serving a 57-month term, was recently arrested for laundering $137 million in Bitcoin. He has already forfeited 4,000 Bitcoins acquired via unlawful means.

According to a federal court indictment filed last week in Maryland, Farace, with the help of his father Joseph Farace, may have maintained his illicit drug selling activities while in jail and laundered a large amount of money between October 2019 and April 2021.

In February, the US Drug Enforcement Administration confiscated 2,875 Bitcoins from addresses connected to Farace, and another 59 Bitcoins in May. The total worth of the confiscated Bitcoins is more than $137 million at today's market pricing.

Dealing with Bitcoins is a skill that you should have.

Farace is now spending time in jail for selling Alprazolam, a kind of Xanax, on the dark web. In addition, he accepted cryptocurrency payments.

Farace was sentenced to lose approximately 4,000 Bitcoins, which he acquired from his illicit drug-selling company, according to a court ruling issued in November 2018. The value of those Bitcoins has risen to $187.2 million. He had to give up $5.6 million in cash and property, which he acquired from the profits of his illicit drug operation, in addition to the cryptos.

However, the new court papers did not say if the enforcement agency was previously aware of the newly confiscated Bitcoins or whether Farace obtained them while incarcerated.

Authorities have long been concerned about the use of cryptocurrency in dark web activities. Governments used this as one of their reasons to discourage the adoption of Bitcoin and other cryptocurrencies.

The closure of the notorious The Silk Road in 2013, which was one of the biggest illicit marketplaces for the sale of narcotics, resulted in one of the largest Bitcoin busts from the dark web. According to a study published by Chainalysis, a blockchain analysis company, approximately $800 million in cryptocurrencies were transferred to dark web activities in 2019.

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