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Bitcoin: Silk Road Seller Pleads Guilty to $19 Million Money Laundering

November 8, 2019 at 2:45 PM | By Jit Sutradhar News

A former drug dealer pleaded guilty to charges that he laundered $ 19 million profit through the Silk Road.

Attorney with the Southern District of New York announced a plea agreement with Hugh Brian Haney on Thursday, adding another postscript to dark famous historical web of this market. According to the press release, Haney is accused of laundering close to $ 20 million using bitcoin in early 2018.

Silk Road is among the black market the initial site and a haven for drug vendors accept bitcoin-up operator, Ross Ulbricht, was arrested in October 2013 and the site was closed. Ulbricht is currently serving a life sentence on charges of drug distribution, computer hacking and conspiracy.

Haney is one of the sellers who use the market. According to prosecutors, Haney is a “high-ranking member” of narcotics outfit known as Pharmville, and is said to have received nearly 4,000 bitcoin of Silk Road-linked accounts until February 2012. According to the complaint, he traded in fentanyl, OxyContin and other narcotics sales.

“Hugh Haney used Silk Road as a means to sell drugs to people around the world,” said US Attorney Geoffrey S. Berman said in a statement. “Then he laundered more than $ 19 million in profits through cryptocurrency.”

He was caught after liquidating the remaining Bitcoins in exchange for $ 19,147,053 in January and February 2018. The unnamed company froze his account and launched an internal investigation that eventually led to a search warrant. Haney was arrested in July 2019.

Initially, Haney admitted his bitcoin derived from mining operations. But researchers used “blockchain analysis software” to show the funding comes from the Silk Road, according to the complaint of July.

According to his plea agreement, Haney pleaded guilty to one count of hiding money laundering and one count of engaging in financial transactions in property derived criminal. She is set to be sentenced in February 2020.

Handcuffs image via Shutterstock

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