Crypto crime is fast becoming a norm in the industry as there are increasing cases of hackers. The cryptocurrency industry is gaining more attention from the public but tuts rather unfortunate that online thefts take advantage of the newfound fame to carry out their evil deeds. A few days ago, we reported how Ledger was hacked by Shopify employees who have access to users’ transaction details.

Not more than 270,000 clients were affected by unfortunate incidents as their email addresses, names, and other confidential information can be seen by the member of the public. At the time of this report, the culprits are yet to be arrested despite the platform’s decision to give 10 BTC to anyone who knows accurate information and the perpetrators’ location.

Crypto crime rate continues to Increase despite collective efforts to stop it

Despite joint efforts of all crypto investors and Exchange platforms to end the growing crypto crime, the rate of hack and other forms of crypto crimes continue to increase regularly. A report breaking out in today’s early hours revealed that a particular group of Darknet drug dealers was engaged in a criminal activity known as money laundering.

It is said that this group of people has unlawfully gathered not less than $16 million worth of Bitcoin (392 BTC) from Bitcoin traders. However, the suspected criminals have been arrested after a federal judge decided to publish a warrant that called for their immediate arrest.

Though the illegal drug dealers have their money in crypto, they reportedly funneled close to $600,000 via unsupported channels to buy a fishing boat and squid permits. Their decision to purchase fishing equipment is seen as a strategy to conceal their illegal actions. With the boat and squid permit, they automatically appear as fishermen investing their earnings in Bitcoin.

Criminals deployed the use of cold storage system to remain undetected

The Federal Authorities didn’t just arrest them but also nullify the boat and the permit purchased by the suspect criminals. They also freeze their crypto account, meaning they have nothing to call their own unless they are found not guilty of the criminal charges leveled against them. As it stands, the case is already in a small court in Southern California. According to a statement through the court filing, the alleged criminals will remain in the US Marshals Service’s custody until the judge passed the final judgment.

As much as the US regulatory body and law enforcement agencies are yet to disclose how the illegal drug dealers stored their digital funds, they claim that they use a cold storage system. The system makes it very difficult to notice any transaction they made as they are entirely offline. Contrary to whom they claimed to be, the US attorneys disclosed that the arrested group of men are illegal drug dealers who made loads of BTC from the sales of fentanyl patches and opioids without prescription through the darknet.

Meanwhile, this isn’t the first time case of illegal drug dealers is surfacing in the crypto industry. It all began in 2014 when the selling of illicit prescription drugs on the darknet is being carried out via many marketplaces such as Dream, Silk Road, Alpha Bay, and Wall Street Market.