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Gungun Bhatia
Oct 8, 2022
by Gungun Bhatia

Californian Accused of Laundering $5.3M in Drug Proceeds with Bitcoin

Bitcoin laundering

Table of contents

  1. Charges Against John Khuu
On Friday, U.S. authorities accused John Khuu, a California resident, of conspiring to import prohibited substances illegally and laundering its proceeds using Bitcoin. Khuu and his accomplices allegedly laundered more than $5,350,000 throughout the conspiracy.

According to a news release, John was detained in August 2022 after federal judges in Texas and California issued the charges in May and August, respectively.

Charges Against John Khuu

One of the charges alleged that John Khuu established vendor accounts on various dark web markets to sell counterfeit medicines and other banned drugs in January 2020. Customers generally paid for these medicines with Bitcoin (BTC), while the accusation implied other cryptocurrencies could have also been employed.

Through dozens of financial accounts and hundreds of transactions, John Khuu and his accomplices exchanged Bitcoin for US currency and employed the proceeds to launder money. In addition, Bank of America, Citibank, JPMorgan Chase, and Wells Fargo are among the financial institutions Khuu allegedly used to conceal the funds. According to the indictment, he opened numerous fictitious accounts at various banks.

The rest of the indictment continued to detail multiple transactions Khuu is accused of carrying out as part of his endeavors to transform Bitcoin into cash. He reportedly completed less than 500 transactions at maximum, selling 620 BTC in total. According to a new court document published on October 6th, Khuu renounced his privilege to a detention hearing.

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Californian Accused of Laundering $5.3M in Drug Proceeds with Bitcoin
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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