According to the US Department of Homeland Security, a man was arrested on July 18 for trying to clean up the $19 million bitcoin obtained on the Silk Road drug market.
Hugh Haney is facing an allegation of allegations of illegal transactions in money laundering and financial transactions. If guilty, he may face up to 30 years in prison.
Homeland Security identified Haney after he reportedly transferred stolen funds to an anonymous crypto exchange.
Haney claims that a large amount of bitcoin comes from Bitcoin mining, but the US Department of Homeland Security said it has evidence to track transactions on the Bitcoin blockchain back to the Silk Road.
Once Bitcoin was converted to cash between 2012 and 2013, US Department of Homeland Security officials said they had seized the money.
The Silk Road is one of the original and most popular dark online markets for the purchase and sale of drugs and other illegal (and legal) items.
It was closed by the FBI in 2013 and its founder, Ross Ulbricht, was later sentenced to life imprisonment. In its two and a half year life cycle, it is reported that there are more than 100,000 customers.
Although the Silk Road is long gone, the darknet is still a popular place for Bitcoin. According to Chainalysis, in 2018, more than $600 million in bitcoin flowed into the dark network.
However, the proportion of bitcoin used for ilicit activities has dropped sharply from nearly 7% in 2012 to a few percentage points today compared to legitimate bitcoin. Encryption crimes still seem to be valid.