Five individuals have pleaded guilty for their involvement in “FireBunnyUSA.” This network trafficked narcotics nationally across the United States. The dark web crypto drug operation successfully laundered $7.9 million in illicit proceeds. The conviction was announced this Wednesday by Manhattan District Attorney Alvin L. Bragg, Jr., highlighting the network’s scope.
The criminal organization operated intensively between January 2019 and August 2022. Its base of operations was initially in Flushing, Queens. From there, they shipped over 10,000 packages of narcotics to all 50 states and Washington, D.C. The ringleader, Nan Wu, received a minimum sentence of 6.5 years in state prison. This followed his guilty plea to criminal sale of a controlled substance and money laundering on April 3.
As part of the plea deal, Wu was ordered to forfeit 20 BTC, 3,297 XMR, and over $12,800 in cash. Manhattan authorities conducted eleven undercover purchases to dismantle the network. They bought cocaine, MDMA, and ketamine shipped directly to Manhattan. Investigators found the group collected nearly $8 million in BTC payments. Peng Peng Tang’s phone alone contained $900,000 in crypto assets.
The laundering method was sophisticated. Prosecutors detailed how they used Monero (XMR) to obscure the trail of funds. They converted the Monero payments back into Bitcoin (BTC). Then, they moved the funds through various exchange companies controlled by Wu and Tang. At least $2.4 million was converted into Chinese yuan abroad. Another $734,000 was laundered through U.S. crypto exchanges.
Are “Privacy Coins” the Perfect Shield for Crime?
This case underscores the tension between privacy and regulation in the crypto space. While Monero offers strong anonymity, its illicit use raises regulatory concerns. However, data analysis experts point out this is not the norm. The majority of criminal activity still uses mainstream cryptos, such as Bitcoin and Ethereum. The primary reason is that these main assets possess greater liquidity and are easier to use.
The use of privacy coins presents a significant challenge for criminals. Blockchain analysis experts note a key weakness in this strategy. Converting privacy coins to fiat currency is difficult, as it requires passing through checkpoints. Many centralized exchange platforms have removed support for Monero and Zcash. Although the transactions may be private, the need to “exit” the crypto ecosystem remains the vulnerable point authorities exploit to track and prosecute these cases.
