Officials from the federal government stated that John Khuu traded counterfeit medications for bitcoin, earning over $5 million as a result.
Friday, U.S. investigators accused California resident John Khuu of money laundering conspiracy and illegal importation of a restricted chemical, saying he sold counterfeit pharmaceuticals for bitcoin.
According to the news announcement, Khuu was caught in August 2022 after criminal trials in Texas and California brought charges against him in May and August, respectively, of that same year.
One of the charges against Khuu is that starting in January 2020, he began selling counterfeit medicines and other banned drugs using vendor accounts he had set up on several dark web markets. Customers “typically” purchased these medications using bitcoin (BTC), however, the indictment claimed that other cryptocurrencies may have also been utilized.
Khuu is also suspected of using a web of banks to launder the money. The accusation said that he had opened many bogus accounts with various financial institutions.
The indictment goes on to detail a number of transactions Khuu allegedly engaged in while attempting to convert bitcoin into cash. In all, he reportedly engaged in slightly under 500 transactions involving the selling of around 620 BTC.
Khuu renounced his right to a custody hearing, according to a separate Oct. 6 court filing.
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