A former narcotics trafficker pleaded guilty to charges of having laundered $ 19 million in profit through Silk Road.

South York District attorneys announced Thursday a plea deal with Hugh Brian Haney, adding another postscript to the infamous dark market story. According to a press release, Haney was alleged to have laundered nearly $ 20 million with Bitcoin in early 2018.

The Silk Road was among the first dark web drug markets and a haven for its bitcoin-accepting sellers until its operator, Ross Ulbricht, was arrested in October 2013 and the site has been closed. Ulbricht is currently serving a life sentence for narcotics distribution, computer hacking and conspiracy.

Haney was one of the sellers who used the market. According to prosecutors, Haney would have been a "prominent member" of Pharmville, a narcotics group. He reportedly received almost 4,000 bitcoins related to Silk Road in February 2012. According to the complaint, he allegedly trafficked fentanyl. , oxycontin and other narcotics sales.

"Hugh Haney has used Silk Road as a way to sell drugs to people around the world," US attorney Geoffrey S. Berman said in a statement. "Then he laundered more than $ 19 million in profits from cryptocurrency."

He was arrested after liquidating his remaining bitcoins against $ 19,147,053 in January and February 2018. The joint stock company froze his account and opened an internal investigation which eventually resulted in a search warrant. Haney has been arrested in July 2019.

Initially, Haney claimed that his bitcoin came from a mining operation. But the investigators usedblockchain analysis software"To show that the funds came from Silk Road, according to the July complaint.

According to his plea agreement, Haney pleaded guilty to concealment of money laundering and financial transaction involving property obtained by crime. He should be sentenced in February 2020.

Image of handcuffs via Shutterstock

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