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Legal & Regulation

Silk Road Merchant Admits Guilt in Money Laundering Charges Worth $19 Million With Bitcoin

Hugh Brian Haney, a former narcotics dealer, has pled guilty to charges of laundering over $19 million USD of his profits that were raised illegally using Silk Road, a prominent dark web market. Now, according to the prosecutors of the Southern District of New York, a plea deal was struck and Haney will go to jail. The sentencing will not happen until early 2020, though.

This criminal was known to be one of the most high-ranking members of a narcotics group known as Pharmville. He was able to get around 4,000 Bitcoin from his Silk Road account before it was shut down. The man is being accused of trafficking drugs such as oxycontin, fentanyl, and others.

U. S. Attorney Geoffrey S. Berman has affirmed that Haney has used the online black market to sell drugs to people all over the globe and that the drug dealer was able to get a profit of more than $19 million USD using it.

He was caught when he was trying to liquidate his Bitcoin and turn it into cash so he could spend it without being traced. This happened in February 2018 and his accounts have been frozen since then. He originally claimed that he mined all the BTC, but was unable to prove it.

The Silk Road was known for being very popular during the end of the last decade and the beginning of this one. Ross Ulbricht, its creator, was condemned after the site was shut down and he is currently is serving a life sentence for his involvement with the network.

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