These charges are the result of a multi-agency investigation dubbed Operation Crypto Runner, which focuses on stifling the activities of international money laundering networks. The U.S. Attorney’s Office, Secret Service, and the Postal Inspection Service joined forces for this operation. “These arrests are just the beginning. We are committed to bringing each of the remaining perpetrators to justice,” William Smarr, a Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office, said. So far, as part of Operation Crypto Runner, authorities have “disrupted” annual money laundering transactions worth over $300 million, seized millions in cash and crypto assets, and uncovered thousands of victims.
International Laundering Schemes
A press release from the United States Attorney’s Office for the Eastern District of Texas said the 21 individuals who were arrested played various roles in moving cryptocurrencies from victims in the U.S. to foreign criminal groups. Some of this money was acquired through romance scams, business email compromise (BEC), technical support scams, and other fraudulent schemes. Tulasidas Konda, one of the accused who pleaded guilty in May last year, personally laundered over $4 million and led a criminal organization that laundered money on behalf of foreign co-conspirators. John Khuu, who was charged in August, distributed counterfeit pharmaceutical pills and other illegal substances on the dark web. Khuu and his co-conspirations laundered over $5 million. “These defendants orchestrated highly organized and sophisticated schemes to launder fraud proceeds through cryptocurrency,” U.S. Attorney Brit Featherston said. “By acting as domestic money launderers for foreign co-conspirators, these defendants played indispensable roles that allowed foreign actors to reach from overseas to target victims in communities across the United States,” he added.
Money Laundering via Cryptocurrency
Criminals are turning to cryptocurrency to launder money in a bid to stay anonymous and escape detection by law enforcement. But, U.S. authorities have proven that they can “follow money across the blockchain” to disrupt the activities of criminals. “Today’s announcement demonstrates the investigative capabilities of the Secret Service and highlights the success of our collaborative efforts through Operation Crypto Runner to dismantle and disrupt transnational money laundering networks,” Smarr said. In February, U.S. authorities seized over $3.6 billion in cryptocurrency from a couple who were laundering money stolen from the 2016 Bitfinex hack. The couple had set up different accounts with fictitious names to launder the stolen money. Also, in February, blockchain analysis firm Chainalysis revealed that Russia-based services such as crypto-mixers and exchanges are used to launder enormous sums.
