The US Government Seeks to Recover $54 Million in Ethereum from Convicted Drug Trafficker
The US government has initiated a civil forfeiture action to regain possession of $54 million worth of Ethereum (ETH) that was previously seized from Christopher Castelluzzo. Castelluzzo, who is currently serving sentences for drug distribution, had purchased 30,000 ETH with $9,000 from narcotics sales in 2014. Additionally, he received 30,000 Ethereum Classic (ETC) following a hard fork in July 2016. The value of the 30,000 ETH has now grown to approximately $54 million. The government is also seeking to forfeit other cryptocurrencies including Cardano (ADA), Solana (SOL), Avalanche (AVAX), Algorand (ALGO), Binance Coin (BNB), Uniswap (UNI), and Polkadot (DOT). The seized tokens were moved to government-controlled wallets in 2022 and 2023. Castelluzzo had planned with his associates to evade taxes and transfer the ETH to offshore locations.
US Government Sends a Warning Message by Seizing Cryptocurrencies
The recent civil forfeiture action filed by the US government to recover $54 million worth of Ethereum from a convicted drug trafficker serves as a strong message that illicit activities involving cryptocurrencies will not go unpunished. James E. Dennehy, FBI-Newark Special Agent in Charge, stated that this action should serve as a lesson for those who believe their illegal behavior or gains cannot be traced. The US government is determined to hold criminals accountable and impose real-world consequences on them. This move follows the government’s previous seizure of significant amounts of Bitcoin from criminals, making it one of the largest asset holders of the cryptocurrency. By targeting various cryptocurrencies, authorities are demonstrating their commitment to combating illicit activities in the crypto space.
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