Californian Man Sentenced to Prison For 7 years for Crypto Laundering

A Californian man has been sentenced to prison for illegal cryptocurrency money laundering and sale of fake drugs. According to US authorities, John Khuu, a resident of California, has been sued for committing a crime of money laundering and for being involved in a scheme to operate an illegal money laundering operation.

According to a press release from the United States Department of Justice (DoJ), John Khuu has been sentenced to prison for 87 months for using Bitcoin on the dark web to launder and generate profits illegally. In court, the Texas police presented evidence that Khuu used to import fake MDMA from Germany in an illegal way, and then he used to sell it to customers in the US in different dark web markets and get payments in Bitcoin (BTC).

Khuu and his partner would then trade the Bitcoin for US currency. Khuu has been indicted separately in the Northern District of California and was charged with illegal importation of a Schedule I controlled substance.

However, this arrest came as a part of Operation Crypto Runner, an Organized Crime Drug Enforcement Task Force (OCDETF) operation that deals with the highest-level criminal and illegal organizations that are involved in illegal activities in the United States.

Additionally, in the past, Khuu has faced many legal charges. The Eastern District of Texas charged him with money laundering on May 18, 2022. On August 17, 2022, he was charged with unlawful importation of a Schedule I controlled substance in the Northern District of California.

Furthermore, authorities arrested him at a residence in Garden Grove, California, on August 19, 2022.