Biggest Bitcoin Seizure: Drug Scam Exposed Linked to 8100 Bitcoin
Banmeet Singh, a 40-year-old Indian national from Haldwani, India, was once one of the most powerful and elusive drug traffickers in the world. He operated a network of dark web marketplaces, such as Silk Road, Alpha Bay, and Hansa, where he sold hundreds of kilograms of drugs, including LSD, ecstasy, fentanyl, Xanax, ketamine, and Tramadol, to customers who paid with cryptocurrency like Bitcoin.
Singh was able to evade law enforcement for years by using encryption, anonymity software, and offshore servers. He also laundered his illicit profits through various cryptocurrency accounts, which he believed were untraceable and secure.
However, his luck ran out in 2018, when he was indicted by the U.S. Department of Justice (DOJ) for conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. The U.S. Drug Enforcement Administration (DEA) seized his cryptocurrency accounts, which amounted to $150 million at the time, and later became worth $342 million as the price of Bitcoin soared. This was the largest single cryptocurrency and cash seizure in DEA history.
Singh was arrested in London in 2019 and extradited to the U.S. in 2023. He pleaded guilty to his charges on Friday, admitting his role in running a dark web narcotics conspiracy.
Dark Web, Drugs and Bitcoin The Whole Story
Singh’s plea agreement revealed some details about his dark web drug empire. He controlled at least eight distribution cells in various U.S. states, where he shipped or arranged the shipment of drugs from overseas. He also sent drugs to locations in Canada, England, Ireland, Jamaica, Scotland, and the U.S. Virgin Islands.
According to Attorney Kenneth L. Parker, Singh and his associates often used the signature phrase “I’m still dancing” to signify their success and defiance. However, Parker said, “Today, with Banmeet Singh’s plea of guilty, the dance is over.”
Singh is expected to receive an eight-year prison sentence, according to the Washington Post. He will also forfeit his remaining cryptocurrency assets, which the U.S. government plans to sell. The U.S. recently announced it would sell $130 million worth of bitcoin linked to a previous Silk Road seizure.
DEA Special Agent in Charge Orville O. Greene said that Singh was designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world. He added, “This case demonstrates the DEA’s ability to disrupt and dismantle the most sophisticated dark web drug networks and bring their operators to justice.”
The investigation benefited from the collaboration of international partners, including the United Kingdom’s National Crime Agency (NCA), Crown Prosecution Service (CPS), and Central Authority (UKCA). The Justice Department’s Office of International Affairs was crucial in securing Singh’s arrest and extradition from the UK.
