Drug trafficking

Crypto, Cash and Drugs: Crypto Use Grows as Drug Trade Digitalizes

From speculation about its inherent value to theories about it being the payment method of choice for criminals, cryptocurrency is having a tough time keeping a clean name. One of the most common accusations is that cryptocurrencies perpetuate the sale of illicit drugs, a view recently expressed by United States Treasury Secretary Steven Mnuchin. Cointelegraph takes a look at the impact of cryptocurrency on illegal drug sales and whether it should shoulder more of the blame than cash.

U.S. government clamps down

The watershed moment for the U.S. taking decisive action against illicit drugs being purchased with cryptocurrency happened in 2013, when FBI agents rushed into the San Francisco Public Library to arrest Ross Ulbricht, a man who played a central role in the digitalization of the international drug trade. Operating under the pseudonym ‘‘Dread Pirate Roberts,” Ulbricht was the mastermind behind the Silk Road — an anonymous, Amazon-like marketplace located on the darknet — which let users buy and sell anything, regardless of legality. Although the site listed weapons, stolen credit card details as well as legal products, illicit drugs were by far the most common listing.