Californian Man Indicted for Laundering Over $5M With Cryptocurrency

A California man who goes by the name John Khuu is currently facing charges in the Eastern District of Texas under the United States Department of Justice (DoJ).

According to the Justice Department, Khuu was indicted by a federal grand jury in the Eastern District of Texas for attempting to launder drug trafficking loot through crypto channels. 

He was put on trial by U.S. Magistrate Judge John D. Love a few days ago after he was arrested in August at his residence in Garden Grove, California. At present, Khuu’s case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

In clear terms, the California man allegedly distributed counterfeit drugs and other controlled substances on the dark web market to customers across the United States and received most of his payment in Bitcoin (BTC).

Other cryptocurrencies were also used as a means of payment, but BTC was the primary digital asset being transferred from the dark web market customers’ accounts to Khuu’s vendor accounts.

The cryptocurrencies were then traded for U.S dollars and the proceeds were laundered through hundreds of transactions and dozens of financial accounts. Based on the published statement, Khuu and his alibis have laundered more than $5,350,000. 

John Khuu Faces Charges in California

John Khuu has been charged in several U.S states including Texas.

His indictment in the Eastern District of Texas by a federal jury court for conspiring to commit money laundering started in May. Shortly after in August, a two-count indictment was returned by the federal jury court of the Northern District of California for his participation in the unlawful importation of a controlled substance.

For now, Khuu has not been declared guilty as a grand jury indictment is not evidence of guilt. Eventually, if he is convicted, he is likely to serve a maximum of 20 years for each charge against him in federal prison. The U.S. Secret Service and the U.S. Postal Inspection Service are still carrying out investigations on Khuu’s case. 

Similarly, Joann Vasquez, a 38 years old woman who lives in Grand Prairie is facing charges in connection to a missing BTC worth $570,000.  Dallas Police believe that acquired this fund through account passwords stolen from a home in her possession.