A Texas-based drug trafficking group consisting of six individuals has been sentenced to various prison terms for laundering money through cryptocurrency.
The cartel, known as “Loverbois,” laundered between $15,000 and $50,000 per month and distributed methamphetamine disguised as Adderall pills. Sentences ranged from probation to 84 months in prison, as the U.S. Attorney’s Office for the Southern District of Ohio announced. The operation highlights growing efforts by U.S. law enforcement to combat drug-related cybercrime.
The multi-agency task force brings down drug network
The investigation was led by multiple law enforcement agencies, including the FBI, DEA, and U.S. Postal Inspection Services, as part of the Organized Crime Drug Enforcement Taskforce (OCDETF). The combined efforts of federal and local agencies ultimately led to the indictment of the gang in June 2021 after undercover agents in Ohio ordered and received counterfeit pills.
The gang’s activities, which spanned from July 2019 to December 2020, involved the sale of nearly 12 kilograms of methamphetamine per month and the laundering of significant sums using cryptocurrencies. The large-scale operation processed approximately 20 drug orders daily.
Details of the criminal operation
Each “Loverbois” network member played a specific role in the criminal enterprise. Duc Cao Phung, who oversaw online transactions and cryptocurrency laundering, managed the group’s darknet accounts. Phung coordinated the sale of methamphetamine pills, which were produced by two other members, William David Goode Harris and Ainoa Winniec Plumber Guzman. These two manufactured the drugs at a residence in Houston using industrial-grade equipment.
Kevin Tran supplied the drugs and handled sales transactions. Meanwhile, Zachary Kacmar Pray was in charge of logistics, and John Dang played a crucial role in packaging and laundering the cryptocurrency proceeds, reportedly moving about $15,000 per month. Together, the group laundered around $50,000 monthly through cryptocurrency exchanges.
Sentencing marks a significant win for law enforcement
Deputy Criminal Chief Fredrick C. “Fritz” Shadley, who prosecuted the case, called the sentencing a significant victory in the fight against organized drug networks. The sentencing of the “Loverbois” marks one of several recent successes in the battle against the intersection of drug trafficking and cryptocurrency-related money laundering.
As cryptocurrency adoption rises, so does its use in illegal activities. In recent months, law enforcement agencies worldwide have ramped up efforts to target criminal organizations exploiting digital assets. This case serves as an example of how U.S. authorities are continuing to focus on dismantling such operations.
In a separate recent case, a 21-year-old from Indiana admitted to a cybercrime scheme in which he defrauded over 500 victims of $37 million worth of cryptocurrency. Similarly, Costa Rica law enforcement recently arrested 36 individuals linked to a money laundering ring involving cryptocurrencies. These cases highlight the increasing complexity of cybercrime and the importance of global cooperation in fighting such networks.