American Sentenced to 7 Years for Crypto-Fueled Drug Trafficking Scheme

An american has been sentenced to over seven years in prison for his involvement in a large-scale drug trafficking operation that relied on cryptocurrency for payments and money laundering.

Authorities say 29-year-old John Khuu orchestrated a scheme to import counterfeit pharmaceuticals and MDMA from Germany, distributing them across the U.S. through dark web marketplaces.

Transactions were conducted in Bitcoin and other digital assets, which were later converted to cash and funneled through multiple accounts in an effort to obscure the money trail.

Khuu’s activities drew the attention of federal investigators, leading to his indictment in Texas for money laundering conspiracy in May 2022. A few months later, he faced additional charges in California for illegally importing controlled substances.

His arrest in Garden Grove came as part of “Operation Crypto Runner,” a broader crackdown on international money laundering networks that implicated 21 individuals.

After pleading guilty last year to multiple charges, including operating an unlicensed money-transmitting business, Khuu has now received his sentence—87 months in federal prison—handed down by U.S. District Judge J. Campbell Barker.