California man indicted for laundering crypto in drug trafficking scheme

Legal • October 9, 2022, 6:42PM EDT
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Quick Take

  • The DOJ announced a jury indicted a California man for allegedly using crypto channels to launder more than $5 million in drug trafficking proceeds.

The Department of Justice announced charges against a California man Friday over allegedly attempting to launder drug trafficking proceeds through crypto channels.

John Khuu allegedly distributed fake prescription drugs and other substances on dark web markets, receiving payment primarily in bitcoin. Through hundreds of transactions, Khuu exchanged the crypto for dollars, according to the indictment, laundering more than $5,350,000. 

Khuu faces an indictment in the Northern District of California for unlawful importation of a controlled substance in addition to the new money laundering charges handed down in the Eastern District of Texas. Authorities arrested Khuu in August.  


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AUTHOR

Aislinn Keely profile picture Aislinn Keely

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.

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