The numbers are eye-opening. 288 arrests. 117 firearms. 850 kilograms of drugs. $53.4 million in cash and virtual currencies.
That was the impact of Operation SpecTor, a coordinated international effort targeting fentanyl and opioid trafficking on the dark web, or darknet.
Dark Web
The dark web lives up to its name—it describes internet sites that are hidden and only accessible by a specialized web browser, software, or configurations. The aim of the dark web is to allow users to remain anonymous, which creates a perfect environment for those seeking to profit from illegal activities. As part of that effort, markets on the dark web often only accept payment through digital currencies, such as Bitcoin
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Operation SpecTor
The operation was led by the Department’s Joint Criminal Opioid and Darknet Enforcement – or JCODE – team and built on the successes of previous takedowns of marketplaces like Hydra, resulting in a series of coordinated but separate law enforcement investigations and over 100 federal operations and prosecutions. Attorney General Merrick B. Garland said the operation “represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web.”
Arrests And Seizures
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One of those actions resulted in a 16-year sentence handed down to Anton Peck of Boca Raton, Floria, for conspiring to possess with the intent to distribute controlled substances, including methamphetamine, heroin, and fentanyl, a synthetic opioid up to fifty times stronger than heroin. According to court documents, Peck distributed narcotics from darknet markets using the profile “Syntropy”—his customer list included more than 6,000 people. Peck and co-conspirators Kevin Fusco and Vincent Banner accepted payment in cryptocurrency and then mailed fentanyl, heroin, and methamphetamine nationwide using the U.S. Postal Service. Fusco was sentenced to 11 years in prison for his role in the conspiracy, and Banner is awaiting sentencing.
A month before Peck’s sentence, a federal grand jury returned an 11-count indictment charging Christopher Hampton, of Cerritos, California, with various narcotics and weapons offenses. He is accused of heading an organization that operated labs that used high-speed pill presses to make fake pills containing fentanyl and methamphetamine—the machines emulate the markings on authentic prescription pills, such as Oxycodone or Adderall. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710”, allegedly selling nearly $2 million worth of narcotics on two of these darknet marketplaces alone. At the time of his arrest, law enforcement found and seized 450 pounds of suspected narcotics, six pill press machines, and illegal firearms, including assault rifles and a machine gun. Agents also located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and materials to press other tablets.
Holly Adams and Devlin Hosner of Indio, California, were charged with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine and with conspiracy to launder money. According to court documents, Adams and Hosner used accounts named “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode to sell tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner allegedly conducted over 1,100 narcotics and other contraband transactions and received more than $800,000 in cryptocurrency in return. Federal law enforcement officers found over 10,000 counterfeit oxycodone pills and approximately 60 grams of methamphetamine in a hotel where Adams and Hosner lived. Adams and Hosner are currently awaiting trial.
IRS-CI
Among those agencies who participated in the investigation was IRS-CI, which, according to IRS-CI Chief Jim Lee, plays “an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“Everyone knows that IRS-CI investigates tax crimes, but our special agents – and their expertise following financial trails – are often the reason that cyber criminals who traffic illegal narcotics on the dark web end up behind bars,” Lee said. “Just like our tax cases, we have to piece together evidence from complex financial transactions that are often used to hide income earned from illicit activities.”
Impact
IRS-CI worked with other agencies, including the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and Alcohol Tobacco and Firearms, as part of the operation. Also key were law enforcement from Austria, Brazil, France, the Netherlands, Poland, Switzerland, and the United Kingdom.
In remarks made in Washington, DC, Garland said about the operation, “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”