ARTICLE
13 February 2020

DOJ Continues Enforcement Actions Targeting Cryptocurrency Crimes

B
BakerHostetler

Contributor

BakerHostetler logo
Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
The Eastern District of Virginia announced last week that a Richmond, Virginia, man pled guilty to distribution of drugs similar to fentanyl.
United States Technology

Last week, the Southern District of New York announced that a senior adviser to the "Silk Road" website pled guilty in Manhattan Federal Court. Roger Clark pled guilty to conspiring to distribute large quantities of narcotics, a charge that arose from his role as the senior adviser to the owner and operator of the online illicit black market. From 2011 to 2013, Silk Road, a secret online marketplace on the dark web for a host of criminal activity, was used by drug dealers and others to distribute illegal drugs to more than 100,000 buyers, and to launder hundreds of millions of dollars derived from those transactions. Clark, a Canadian citizen, was paid at least hundreds of thousands of dollars for his assistance in operating Silk Road. He pled guilty to one count of conspiracy to distribute narcotics, which carries a maximum sentence of 20 years in prison.

The Eastern District of Virginia announced last week that a Richmond, Virginia, man pled guilty to distribution of drugs similar to fentanyl. Mark Faulkner, 36, advertised Adderall and fentanyl products on multiple dark web markets. He was identified through bitcoin exchange transactions and three purchases of drugs that were advertised as fentanyl. Faulkner pleaded guilty to distribution of a controlled substance analogue. He faces a maximum penalty of 20 years in prison.

Earlier this week the Eastern District of California announced that a California-based dark web drug vendor had pleaded guilty. Eric Friccero, 29, pleaded guilty on Feb. 3 to possessing with intent to distribute a controlled substance. According to court documents, Friccero distributed marijuana to customers throughout the United States through dark web marketplaces. On Jan. 31, 2019, law enforcement officers searched Friccero's California residence and found marijuana that had been offered for sale on the dark web, along with bitcoin and cash.

On Wednesday, the U.S. Attorney's Office for the District of Arizona announced two arrests in connection with a cryptocurrency investment fund, Zima Digital Assets. John Michael Caruso and Zachary Salter were both arrested on Jan. 30 and charged with conspiracy to commit wire fraud and money laundering.

For more information and related news, please refer to the following links:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More