Paul Johnson, a one time KFC worker living in England was just sentenced to eight years in jail for running a drug selling operation on the dark web. He accumulated £1,868,946 and Bitcoin worth over £300,000 from his efforts, which police seized. He also bought a £175,000 house outright and a second-hand Range Rover.
Johnson accepted payments in Bitcoin, cash and bank transfer and shipped the drugs using packaging from his bogus company, the Labrador Tea Company. Neighbors never suspected he and his wife ran a drug operation from the attic of his modest home in Market Harborough, Leicestershire. Johnson never has the drugs shipped to his home, instead he rented delivery addresses. Unfortunately for him, the UK Border Control intercepted some of the packages. They seized large quantities of ecstasy tablets, cannabis and Ketamine which Johnson would divide into retail packages.
Johnson wasn’t part of a criminal enterprise; he simply couldn’t find another job to support his family despite have a business degree from a university. Ever since the Silk Road marketplace on the dark web was exposed, Bitcoin became know as an anonymous payment method for illegal transactions. While an overwhelming number of Bitcoin transactions are for legal goods and services, Bitcoin and other cryptocurrencies are seen as shady by people who don’t understand the technology. Cash is far more prevalent is illegal transactions. Bitcoin is estimated to be involved in only one percent of illegal transactions. Authorities also point out that Bitcoin is not only used illegally in online marketplaces; it has fueled the rise of ransomware attacks.
The Oxford Business Law Blog reports illegal transactions involving cryptocurrencies has declined since 2015 as Bitcoin becomes more mainstream. Another reason for Bitcoin’s declining use in illegal transactions is the new alternative cryptocurrencies which make it easier for users to conceal their actions.
