Federal agents asserted that John Khuu made over $5 million by trading fraudulent pharmaceuticals for cryptocurrencies.
John Khuu, a California resident, was accused of selling fake medicines for bitcoin by U.S. authorities, who have charged him with conspiracy to import a prohibited substance illegally and with money laundering.
Khuu was detained in August 2022 following the return of the indictments by grand juries in Texas and California in May and August, respectively, according to a news release.
Khuu allegedly set up vendor profiles on various dark web markets to start selling the fake medicines and other banned drugs in January 2020, according to one of the indictments. Customers “typically” paid for these medicines with bitcoin (BTC), while the indictment implied other cryptocurrencies may have also been utilized.
Khuu is also accused of using a network of banks, including Bank of America, Citibank, JPMorgan Chase, and Wells Fargo, to launder the money. He allegedly opened numerous fictitious accounts at various banks, according to the indictment.
The rest of the indictment went on to list many transactions Khuu is accused of carrying out as part of his endeavors to turn bitcoin into cash. He apparently completed less than 500 transactions in total, selling 620 BTC in total.
Another court document made public on October 6 states that Khuu forfeited his right to a hearing about his detention.