Joseph Farace, 72, and his son Ryan Farace, 38, from Maryland, have been sentenced to federal prison for operating an illegal dark web drug business and a Bitcoin laundering scheme.
According to a report, Ryan Farace led a profitable operation, earning over 9,138 Bitcoins through drug sales From November 2013 to June 2017.
In 2020, while in prison, he covertly arranged to transfer approximately 2,874 BTC to an overseas account, using a library book to communicate the recipient’s Bitcoin address to his father.
Federal investigators later uncovered this scheme. By February 2021, authorities had seized all transferred Bitcoin, totalling 2,957.9 BTC.
Joseph Farace received a 19-month sentence for aiding his son in laundering Bitcoin proceeds, followed by two years of supervised release. Ryan Farace was given an additional 54-month sentence for his ongoing criminal activities from prison.
These cases highlight a growing concern over cryptocurrency use in money laundering, particularly among conflicts and approval avoidance.
In the U.S., cryptocurrency investigations are mainly tax-related, with nearly half of all cases in early December 2023 focusing on tax matters rather than money laundering.
Also Read: Bitcoin Rodney Arrested in HyperVerse Crypto Scam
