IRS Sends Undercover Agent to Bust Criminals on Crypto Marketplace

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The US Internal Revenue Service (IRS) goes to nice lengths to observe down criminals who use cryptocurrencies in darkish net drug gross sales, deploying an spy to work on peer-to-peer (P2P) market

The platform presents itself as a P2P bitcoin (BTC) and ethereum (ETH) market with greater than 100,000 customers based mostly in 130 international locations internationally utilizing its providers to purchase and promote crypto. Until 2019, it operated underneath the identify of LocalEthereum earlier than rebranding to embrace extra cryptocurrencies in its portfolio.

Assuming the identification of Mr. Coins, the spy has developed a stellar repute on the location, gathering 100% optimistic evaluations on his profile, all of the whereas accumulating up to USD 200,000 value of crypto in about 50 transactions.

One of the IRS worker’s main successes included taking down an alleged darkish net drug seller by tricking him into sending greater than USD 180,000 in money in trade for crypto, in accordance to a search warrant obtained by Forbes.

In June 2020, Mr. Coins printed a web-based advert during which he supplied to purchase bitcoin for money through mail above market costs, encouraging potential sellers to attain out to him through encrypted apps resembling Wickr or WhatsApp. Soon, an individual who glided by the identify Lucifallen21 contacted the spy to ask concerning the provide. The IRS has recognized the potential vendor as a resident of Evansville, Indiana, and proceeded with negotiating the deal.

By July 2020, Lucifallen21 agreed to purchase BTC 1.59 from Mr. Coins, wrapping up some USD 15,040 in money in garments and mailing it in a field to the spy, in accordance to the accessible authorized paperwork. The man’s messages indicated he was concerned in darkish net drug gross sales, claiming he traded in cocaine, marijuana, in addition to “drugs and opioids”.

The man had proceeded with shopping for additional crypto from Mr. Coins earlier than the spy lastly agreed to promote the drug seller USD 79,000 value of cryptocurrency for USD 54,000 in money. Once the bundle reached the IRS worker, forensics specialists took Lucifallen21’s fingerprints and, utilizing the prevailing data, linked them to the Evansville resident.

Lucifallen21 was arrested, and the IRS has filed expenses within the Eastern District of New York. The alleged drug seller has not filed a plea but.


Learn extra:
– Australian Police Makes Record Crypto Seizure With Dark Web Drug Bust
– DOJ ‘Overlooked’ USD 500k in Forked Crypto in Bitcoin Bust

– South Korea Developing Solution that Hunts Down Dark Web Crypto Deals
– Biggest Darknet Market Allegedly Exit Scams USD 30M In Crypto – Report

– Darknet Turns To Bitcoin Mixers As Exchanges Get Stricter
– A Bright Side to the Dark Web

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About the Author: Daniel