**Manhattan Prosecutors Secure Convictions Against Dark Web Drug Trafficking Network**
Manhattan prosecutors have successfully secured convictions against five members of a dark web drug trafficking network that shipped thousands of packages containing illegal narcotics across all 50 states and Washington, D.C., while laundering millions of dollars through cryptocurrency.
Nan Wu and his four associates — Peng Peng Tang, Bowen Chen, Zixiang Lin, and Katie Montgomery — previously entered guilty pleas for their involvement with the operation known as “FireBunnyUSA.” This network advertised itself on dark web marketplaces as an established supplier offering quality products with fast, discreet delivery.
“This alleged scheme was a brazen attempt to use the dark web to conceal a national drug trafficking operation,” Manhattan District Attorney Alvin L. Bragg, Jr. said in a statement on Wednesday. “Even though this activity originated on the dark web, it can still lead to the same dangerous drug-related violence in our neighborhoods that we see far too often.”
**Sentencing and Seizures**
Wu received a minimum sentence of six and a half years in state prison after pleading guilty to criminal sale of a controlled substance and money laundering on April 3. Additionally, the court ordered Wu to forfeit approximately 20 Bitcoin (BTC), 3,297 Monero (XMR), and $12,857 in cash recovered during searches.
**The Operation**
The FireBunnyUSA operation ran from January 2019 through August 2022, initially based in Flushing, Queens. During this period, the group mailed more than 10,000 packages nationwide.
Manhattan investigators conducted 11 undercover purchases from the vendor between June 2021 and August 2022, buying drugs including cocaine, MDMA, and ketamine, all shipped directly into Manhattan.
Through the operation, the ring laundered over $7.9 million, including more than $3.1 million in proceeds through cryptocurrency exchanges. Wu and Tang alone collected nearly $8 million in BTC payments throughout the operation’s run. Investigators found close to $900,000 worth of cryptocurrency on Tang’s phone.
The network converted funds into Monero (XMR), a privacy-focused cryptocurrency designed to be untraceable, before converting it back to Bitcoin and moving the funds through exchange accounts controlled by Wu, Tang, and others.
Investigators revealed that over $734,000 was laundered through U.S.-based crypto exchanges, and $2.4 million in Bitcoin was converted into Chinese yuan abroad.
**Following the Crypto Trail**
Recent global law enforcement crackdowns have targeted similar dark web and crypto-enabled crimes. These include the seizure of 145 BidenCash domains linked to $17 million in stolen card trades in the U.S.; Operation RapTor’s coordinated raids across 10 countries, which resulted in the seizure of $200 million in cryptocurrency and the arrest of 270 people; and India’s bust of “Edison,” an alleged darknet vendor accused of moving 10,000 LSD blots monthly through Monero.
Andrew Fierman, Head of National Security Intelligence at Chainalysis, previously told Decrypt that while a growing number of criminals migrating to privacy coins such as Monero and Zcash for anonymity is concerning, “the vast majority of criminal activity still uses mainstream cryptos, such as Bitcoin, Ethereum, and stablecoins.”
He added, “Crypto is only useful if you can buy and sell goods and services or cash out into fiat, and that is much more difficult with privacy coins, especially as many mainstream exchanges have offboarded the use of privacy coins, such as Monero.”
Fierman also emphasized that privacy coins, “like other cryptos, operate on an immutable ledger,” meaning records of illicit transactions remain permanent and “such evidence can be investigated and prosecuted even years later.”
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This case highlights ongoing law enforcement efforts to combat dark web drug trafficking and the evolving challenges of cryptocurrency-related money laundering.
https://decrypt.co/345833/five-plead-guilty-over-7-9m-dark-web-crypto-drug-operation
