U.S. authorities seized $54 million in cryptocurrency from dark web drug schemes

ChainCatcher news, according to The Block, the U.S. Attorney's Office filed a civil forfeiture lawsuit on Thursday to recover over $54 million in cryptocurrency that was previously seized, traceable to the proceeds of an illegal dark web drug distribution scheme operating in New Jersey. The statement said that the seized assets include 30,000 Ethereum, currently valued at about $53.5 million, which were purchased by drug dealer Christopher Castelluzzo during the Ethereum initial coin offering (ICO) in July 2014.

Castelluzzo is currently serving a 20-year sentence for various drug distribution offenses, allegedly having exchanged Bitcoin from drug sales for 30,000 Ethereum during the Ethereum ICO in 2014. The U.S. Attorney's Office stated that the Ethereum he held also includes 30,000 Ethereum received in 2016 (approximately $505,000).