A father-son duo from Maryland has been sentenced for their involvement in a dark web drug trafficking and Bitcoin money laundering scheme. Joseph Farace, 72, was sentenced to 19 months in federal prison, while his son, Ryan Farace, 38, was sentenced to 54 months in federal prison.
Ryan Farace, a previously convicted felon, was involved in a scheme involving the manufacture and distribution of alprazolam tablets, commonly known as “Xanax,” through darknet marketplaces in exchange for Bitcoin. He received over 9,138 Bitcoin from these marketplaces.
After his initial conviction, Ryan Farace cooperated with authorities to recover drug proceeds. However, law enforcement was able to reclaim additional drug proceeds in the form of Bitcoin. Despite claiming the inability to access any undisclosed Bitcoin related to his 2018 conviction, Ryan Farace conspired with his father to launder additional proceeds through various financial transactions.
The transactions included the transfer of Bitcoin to online exchanges and retailers, with Joseph Farace benefiting from the proceeds. In total, over 2,874 Bitcoin were seized, with a market value ranging from $65 million to $150 million at the time of seizure. An additional 58.7 Bitcoin linked to Ryan Farace’s drug trafficking was also seized.
The case was investigated by various law enforcement agencies, including the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, and local police departments. This case sheds light on the use of digital currencies in illegal activities and the challenges law enforcement faces in tracking and seizing these assets. The sentencing of the Faraces sends a strong message about the consequences of engaging in such criminal activities.
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