Robert Kelly O’Neill, a resident of Oregon, USA, has pleaded guilty for distributing marijuana on the dark web and laundering cryptocurrency proceeds.
Previously, a joint investigation by Homeland Security Investigations (HSI) and the US Postal Inspection Service (USPIS) into laundering of illegal cryptocurrency proceeds had led the authorities to a dark net vendor, GOLD. GOLD received Bitcoin from customers and mailed them cash at a provided physical address upon charging a fee. Authorities arrested GOLD in New York in October 2016.
Meanwhile, an undercover HSI agent assumed GOLD’s role and continued dealing with one of GOLD’s clients – ‘Resinate’. During 2015-18, Resinate laundered over $725,000 in illicit proceeds through GOLD and $167,000 in Bitcoin through a co-conspirator. The authorities also found that Resinate earned $390,000 in Bitcoin from marijuana sale during 2013-14.
In 2018, upon executing several search warrants on various properties related to this operation, authorities identified O’Neill as Resinate. They discovered a marijuana processing and packaging operation in O’Neill’s garage. The computers and electronic storage devices seized from O’Neill’s residence revealed details of his dark web marketplace vendor accounts. Additionally, the authorities seized over $21,469 in US currency, six Bitcoin, and 458 Bitcoin Cash, which O’Neill has agreed to forfeit as part of his plea agreement.
Source: US Department of Justice