Two Parma men are facing federal charges for allegedly selling drugs and laundering money on the Darknet, according to U.S. Attorney's Office.
Former Parma resident Nicholas J. Powell, 32, and Michael Gonzales 27, currently of Parma, were charged with conspiracy to distribute controlled substances and money laundering. Authorities said they conspired to sell Xanax, steroids, marijuana and various other drugs on Darknet sites such as Silk Road 2, AlphaBay and HANSA.
When Powell was arrested, authorities had already seized around $437,000 in cryptocurrencies from him. Officials said the two men would allegedly distribute drugs across the Darknet and then launder the money through Bitcoin, Etherium and Komodo.
The arrests of Powell and Gonzales were part of a larger year-long investigation into crackdowns on Darknet distributors. In total, more than 35 people from across the country were arrested as part of the sting.
The operation included:
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
