John Khuu, a 29-year-old from San Francisco, California, has been sentenced to 87 months in federal prison for laundering profits from a dark web MDMA selling operation. Khuu pleaded guilty to conspiracy to commit money laundering and operating an unlicensed money-transmitting business. His operation imported MDMA from Germany, sold it on the dark web, and accepted payments in Bitcoin. He then converted this Bitcoin into U.S. currency through numerous transactions across various financial accounts. This arrest occurred as part of Operation Crypto Runner, a multi-year investigation by the Department of Justice, U.S. Secret Service, and Postal Inspection Service targeting cryptocurrency money launderers. The federal government is increasingly focusing on the intersection of cryptocurrency and illegal activities, as the usage of cryptocurrencies for money laundering, particularly related to drug trafficking, is on the rise. Blockchain analytics firm Chainalysis estimated that cryptocurrency laundering could have exceeded $40 billion in 2024, reflecting a growing trend despite traditional laundering methods still being prevalent.

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