A California man, John Khuu, has been sentenced to 87 months in federal prison for laundering proceeds from a dark web MDMA operation using Bitcoin. Khuu, 29, from San Francisco, pleaded guilty to conspiracy charges related to money laundering and operating an unlicensed money-transmitting business. His operation imported MDMA from Germany and sold it on dark web platforms, accepting Bitcoin as payment. Khuu allegedly converted Bitcoin into U.S. currency, laundering the money through numerous transactions and accounts. His arrest was part of Operation Crypto Runner, a joint investigation by the Department of Justice, U.S. Secret Service, and Postal Inspection Service, targeting crypto money launderers. As government efforts intensify against crypto money laundering, data shows that criminals are increasingly utilizing cryptocurrencies for illicit activities, complicating tracking efforts. A report indicated that blockchain-based money laundering could exceed $40 billion in 2024, underscoring growing concerns about its prevalence in drug operations and beyond.

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