TechFlow reports that the U.S. Attorney's Office has successfully recovered $54 million worth of cryptocurrency linked to an illegal darknet narcotics distribution scheme in New Jersey, including 30,000 ether (ETH), valued at approximately $53.5 million. These ether were originally purchased by drug trafficker Christopher Castelluzzo through an initial coin offering (ICO) and have now been seized.
U.S. Attorney Philip Sellinger stated that the recovery of these digital assets aims to combat proceeds from criminal activities, emphasizing that whether cash or cryptocurrency, illicit assets will be confiscated. Castelluzzo was sentenced to 20 years in prison for drug trafficking. Despite his attempts to evade taxes and transfer assets, U.S. authorities uncovered this conduct through recorded prison phone calls, enabling the successful recovery of his cryptocurrency holdings.
This operation was the result of collaboration among multiple agencies, including the FBI’s Virtual Asset Section, Homeland Security Investigations, and local law enforcement.
