British resident to gorfeit $330 million in bitcoin in drug case

Banmeet Singh, a British resident accused of using the dark web to sell illicit drugs around the world, has agreed to surrender bitcoin valued at more than $330 million in what is believed to be the largest seizure of cryptocurrency in the history of the Drug Enforcement Administration.

Seizure of Cryptocurrency

The plea agreement outlines Singh forfeiting more than 8,100 bitcoin, initially valued at $150 million when seized. With the fluctuating price of bitcoin, the current forfeiture amount exceeds $330 million. Singh is accused of using dark-web sites such as Silk Road, Alpha Bay, Hansa, and Dream Market to sell heroin, cocaine, fentanyl, LSD, MDMA, Xanax, and Tramadol to customers in various U.S. cities between 2012 and 2017.

Legal Proceedings and Sentence

Singh, an Indian national living in England, was indicted in Ohio in 2018 and arrested in the following year. However, he was not extradited to the United States until last year. The plea agreement indicates that Singh will plead guilty to money laundering and conspiracy to distribute controlled substances, with an expected eight-year prison sentence pending judicial approval. Although his attorneys, David Thomas and Paul D. Petruzzi, declined to comment on the matter.

Notorious Marketplaces and Similar Cases

Silk Road, a now-defunct marketplace for illicit drugs, facilitated the criminal activities of Singh and others. Recent cases tied to the marketplace included the sentencing of a Maryland father and son who operated under the screen name XanaxMan, and the forfeiture of nearly 3,000 bitcoin. Separately, the Justice Department seized cryptocurrency stolen from Silk Road worth $3.36 billion in 2022. Additionally, the department seized more than $3.6 billion in bitcoin stolen from the Bitfinex exchange, leading to the guilty plea of a married couple from New York on money laundering charges.