In New York the State Police were formally recognized for tracing bank deposits back to online drug markets. The State Police Suspicious Activity Review Team, and the New York State Police Financial Crimes Unit were presented with an award at an event at the US Department of the Treasury in Washington, DC.
“Without the valuable information that US financial institutions provide, the significant cases recognized here today would likely never have seen the light of day,” said Jennifer Shasky Calvery said about the increase in sophistication of financial crimes being investigated by US officials.
As part of the Bank Secrecy Act, while reviewing the financial reports the SAR team discovered that within a six month period, an unnamed person made over 20 un-sourced deposits for an amount of $170,000 in small amounts so as not to raise immediate suspicion.
The Financial Crime unit became aware that several deposits were made into several different bank accounts. The deposits were used to purchase amounts of BTC and then closed shortly after. During the investigation they found that more than$250,000 went through two different financial institutions, claimed to have been made from trading in bitcoin.
After several unnamed companies relating back to Bitcoin helped investigators figure out that the money had been traced back to an unidentified dark net market place, resulting in the seizure of narcotics and an arrest.
The details of this case resemble that of Dylan Soefing of Rochester, New York who was found in possession of more than 800 Xanax pills and $170 in cash. The Syracuse Post-Standard reported that the scheme used the services of Bitstamp and Coinbase, two popular online digital currency trading platforms, with Soeffing and was using online black markets on the deep web to sell illegal goods. According to FinCEN, any individuals were successfully prosecuted.