The world-famous drug marketplaces, Silk Road, was the junkie heaven as the platform allowed the vendors to trade with Bitcoins. The website went down in 2013 when the authorities arrested its operator, Ross Ulbricht. Hugh Brian Haney has given his input to add another incident in the infamous dark web record book.
Haney was accused of laundering almost $20 million using Bitcoin. The accusations were made in early 2018, and the narcotics trafficker was pled guilty for the charges. Haney was among one of the sellers using the marketplace for illegal trades and selling other things. He worked for a narcotics group known as Pharmville and received almost 4,000 Bitcoins from the accounts that were linked to the website through February 2012.
Note: The operator of Silk Road, Ross Ulbricht, is serving a life sentence for the charges of narcotics distribution, computer hacking, and conspiracy.
Haney was involved in the trafficking of fentanyl, oxycontin, and the sale of other narcotic products.
The Big Bust
The U.S. Attorney Geoffrey S. Berman informed that Haney was involved in the laundering of more than $19 million in profits through Bitcoin. The authorities were able to track him down when, in 2018, Haney decided to liquidate Bitcoins in exchange. The exchange froze his account, and an investigation began, which finally led to his arrest in July 2019.
Haney tried to get out of the situation as he said that the Bitcoins came through a mining operation, but the investigators managed to trace back the funds to Silk Road. Later, he made a plea deal with the authorities, and he will be sentenced in February 2020.