An American allegedly laundered 2,933 bitcoin from a prison cell. That equates to more than $ 140 million at current prices.

Millions made with fake tranquilizers

He was already in jail for selling drugs on the Dark Web – and thought he could use the time “sensibly”. Instead of stopping his illegal business, he reportedly simply moved them to the prison cell.

The 37-year-old Ryan Farace had already come there in 2018 because he had illegally traded fake tranquilizers under the name “Xanaxman”, which, how could it be otherwise, could only be paid for with Bitcoin. According to the prosecution, Farace allegedly used a professional pill press to produce deceptively real fake medicine and sell it on the Dark Web against BTC. Together with an accomplice, the coins were then washed, according to the prosecutor’s office:

Farace used pseudonyms to contact a co-conspirator through dark web marketplaces and encrypted messages to exchange Bitcoin he received from his drug trafficking for cash.“

Five years in prison for 920,000 counterfeit pills

To disguise the massive cash receipts, Farace and later his accomplice opened mailboxes and private rental mailboxes under a false name. The co – conspirator then allegedly sent packages full of dollars worth of the bitcoins received to postal addresses specified by Farace-minus a fee. Farace received millions of dollars in cash by mail-all for the Bitcoins from the drug trade. Around 4,000 BTC are said to have been collected – the equivalent of more than 140 million dollars.

Farace was eventually sentenced to nearly five years in prison for selling the 920,000 counterfeit pills. And according to reports, he is now under indictment again. Together with his father, he is said to have continued to launder money from the drug business during the last three years in prison. However, investigators still cannot say whether the 2,933 bitcoins mentioned are among the original 4,000 BTC. It is possible that Farace had other digital assets that no one knew about.

Interesting detail in the margin: Farace had to watch his crypto fortune explode in value from prison. When he began his prison sentence in 2018, the Bitcoin price was still around $ 4,400. And then in 2021 the price explosion followed.

Bitcoin’s long-term chart time: In 2020 and 2021, BTC was able to massively increase its value. Source:

170 Victims, $ 1.4 Million in Damage

A crypto fraud case is also currently causing a stir in Hong Kong: the local police have just arrested 19 alleged perpetrators, who are said to have brought 170 victims for a total of 1.4 million dollars. Nine computers, 128 smartphones, cash, cryptocurrencies and – a sports car were seized.

The suspects are said to have hired influencers on social media, who in turn encouraged the victims to transfer money to the scammers ‘ cryptocurrency wallets and bank accounts.

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