US Department of Justice’s RapTor operation ended with the seizure of $200 million worth of cryptocurrencies and the arrest of 270 people

What’s new? A global law enforcement operation led by the US Department of Justice resulted in the disruption of several drug trafficking channels on the darknet, the seizure of $200 million in cash and cryptocurrency, and the arrest of 270 people in 10 countries. Operation RapTor was conducted as part of the fight against the epidemic of addiction to the synthetic opiate fentanyl. It ended with the largest seizure under the initiative known as J-CODE.

Press release

What else is known? The authorities seized more than two tons of drugs, 144 kilograms of fentanyl-laced substances, 180 firearms, and hundreds of millions of dollars in cryptocurrency.

J-CODE (Joint Criminal Opioid Darknet Enforcement) is the FBI’s initiative to combat opioids on the darknet, which then-US Attorney General Jeff Sessions announced on January 29, 2018.

The latest RapTor operation that became part of it was conducted in cooperation with Europol and dozens of international agencies and targeted drug suppliers and markets in Austria, Brazil, France, Germany, the Netherlands, South Korea, Spain, Switzerland, the United Kingdom, and the United States.

“This historic international seizure of firearms, deadly drugs, and illegal funds will save lives. Criminals cannot hide behind computer screens or seek refuge on the dark web,” said current US Attorney General Pam Bondi.

Frankfurt prosecutor’s office confiscates 34 million EUR worth of cryptocurrencies from eXch exchange

After accusations of involvement in the Bybit hack, the exchange team announced the closure

Read more

The mission points to growing concerns about the use of cryptocurrency to trade opiates and launder profits.

In March, Chainalysis analysts wrote about the “fentanyl on-chain economy” and noted that cartel-affiliated individuals had transferred at least $5,5 million in stablecoins such as USDT to Chinese fentanyl precursor suppliers.

TRM Labs previously reported that 97% of Chinese chemical suppliers surveyed accept cryptocurrency. This indicates that stablecoins have become a critical infrastructure for global trafficking networks.

This method of transferring funds was used by individuals prosecuted under J-CODE. Among them was Iranian national Behrouz Parsarad, indicted in Ohio and sanctioned by the US Department of the Treasury for running Nemesis Market, a marketplace that sold opioids and hid profits through crypto wallets.

The charges were also brought against Rui-Siang Lin, who ran one of the largest darknet marketplaces, Incognito Market. He pleaded guilty last December to drug trafficking conspiracy, money laundering, and selling substandard drugs.

This week, messenger Telegram shut down Haowang Guarantee, a marketplace linked to more than $27 billion in illegal transactions.

Elliptic analysts called Haowang Guarantee the largest cryptocurrency darknet marketplace ever. It traded laundered USDT, fake IDs, and industrial fraud software.

Pedro Inzunza Noriega and his son Pedro Inzunza Coronel were previously indicted in California on fentanyl trafficking charges amid reports linking their Sinaloa cartel to cryptocurrency money laundering through Chinese brokers.