Summary: John Khuu, a California resident, has been sentenced to 87 months in prison for laundering money through Bitcoin and selling fake drugs on the dark web. His arrest was part of Operation Crypto Runner.
A California man, John Khuu, has been sentenced to seven years and three months in prison for running a cryptocurrency-based money laundering scheme and selling counterfeit drugs. According to the U.S. Department of Justice, Khuu used Bitcoin to facilitate illegal transactions on the dark web.
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Authorities in Texas presented evidence that Khuu illegally imported fake MDMA from Germany and sold it to U.S. customers through dark web marketplaces. He received payments in Bitcoin, which he later converted into U.S. dollars. He was also indicted separately in the Northern District of California for unlawfully importing a Schedule I controlled substance.
His arrest was part of **Operation Crypto Runner**, an initiative targeting high-level criminal organizations involved in illegal crypto activities. Khuu had faced multiple legal charges before his sentencing. The Eastern District of Texas charged him with money laundering on May 18, 2022, while the Northern District of California charged him with drug importation on August 17, 2022.
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Authorities finally arrested him on August 19, 2022, at a residence in Garden Grove, California.
