Darknet Drug Dealer Ordered to Forfeit $1.9M Worth Of Bitcoin

By Prashant Jha

A Toronto court in the hearing of a darknet drug dealing racket has ordered the forfeiture of $1.9 million in Bitcoin after it was found that the accumulated digital wealth has come from selling illegal drugs on the dark web. It is believed that the current ruling makes the case the biggest forfeiture of Bitcoin ever.

Mathew Phan, the accused pleaded guilty for the possession of the drugs and also ordered a handgun both ordered on the dark web. Superior Court Justice Jane Kelly who was looking into the proceedings of the case, ordered that the total of 281.41 Bitcoins possessed by the accused must be forfeited to the Ministry of the Attorney General.

The verdict came after the judge heard the expert evidence where it suggests that Phan used cryptocurrencies to buy illegal narcotics and gun from the dark web. Phan pleaded guilty in December to attempting to import a gun and possessing cocaine, PCP and ketamine for the purposes of trafficking.

How the Whole Case Panned Out?

The hearing has been going on in the case for a while now, and it has been established earlier that the accused has been dealing with illegal narcotic on dark web, however, the proceedings have been stuck over the for fitment of the found Bitcoin on the accused computer.

In the February hearing of the case, crown attorney Erin Pancer argued that they have clear evidence about accused being involved in illegal activities, thus the amount of Bitcoin found on his computer is from the proceedings of the crime.

Phan, the accused in the case has argued earlier that not all the Bitcoin found on his computer is proceedings of the crime as he used the digital asset to buy and sell gold and also used the same for trading.

The judge Kelly acknowledged that Phan was trading Bitcoin for a while, but it still did not add up to the huge amount in possession of the accused. Kelly in her order on Wednesday said,

“There is overwhelming evidence to suggest that Mr. Phan was using the dark markets to purchase illegal items such as firearms and silencers. It is clear from the evidence found during searches, particularly of his condominium unit, that he was conducting a large sales operation of illegal narcotics.”

Kelly in her forfeiture order noted that she is completely satisfied with the evidence provided by to her and believe that the large sum of Bitcoin is proceedings of the crime and hence ordered for its forfeiture. MR. Phan has not been sentenced yet.