The U.S. Justice Department
released the below information:
The Justice Department today
announced the seizure of the largest criminal marketplace on the Internet,
AlphaBay, which operated for over two years on the dark web and was used to
sell deadly illegal drugs, stolen and fraudulent identification documents and
access devices, counterfeit goods, malware and other computer hacking tools,
firearms, and toxic chemicals throughout the world. The international operation to seize
AlphaBay’s infrastructure was led by the United States and involved cooperation
and efforts by law enforcement authorities in Thailand, the Netherlands,
Lithuania, Canada, the United Kingdom, and France, as well as the European law
enforcement agency Europol.
On July 5, Alexandre Cazes
aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was
arrested by Thai authorities on behalf of the United States for his role as the
creator and administrator of AlphaBay.
On July 12, Cazes apparently took his own life while in custody in
Thailand. Cazes was charged in an
indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on
June 1, with one count of conspiracy to engage in racketeering, one count of
conspiracy to distribute narcotics, six counts of distribution of narcotics,
one count of conspiracy to commit identity theft, four counts of unlawful
transfer of false identification documents, one count of conspiracy to commit
access device fraud, one count of trafficking in device making equipment, and
one count of money laundering conspiracy.
Law enforcement authorities in the United States worked with numerous
foreign partners to freeze and preserve millions of dollars’ worth of
cryptocurrencies that were the subject of forfeiture counts in the indictment,
and that represent the proceeds of the AlphaBay organization’s illegal
activities.
On July 19, the U.S.
Attorney’s Office for the Eastern District of California filed a civil
forfeiture complaint against Alexandre Cazes and his wife's assets located
throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua
& Barbuda. Cazes and his wife amassed numerous high value assets, including
luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions
of dollars in cryptocurrency, which has been seized by the FBI and the Drug
Enforcement Administration (DEA).
According to publicly
available information on AlphaBay prior to its takedown, one AlphaBay staff
member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over
250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over
100,000 listings for stolen and fraudulent identification documents and access
devices, counterfeit goods, malware and other computer hacking tools, firearms
and fraudulent services. Comparatively, the Silk Road dark web marketplace,
which was seized by law enforcement in November 2013, had reportedly
approximately 14,000 listings for illicit goods and services at the time of
seizure and was the largest dark web marketplace at the time.
“This is likely one of the
most important criminal investigations of the year – taking down the largest
dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no
mistake, the forces of law and justice face a new challenge from the criminals
and transnational criminal organizations who think they can commit their crimes
with impunity using the dark net. The
dark net is not a place to hide. The Department will continue to find, arrest,
prosecute, convict, and incarcerate criminals, drug traffickers and their
enablers wherever they are. We will use every tool we have to stop criminals
from exploiting vulnerable people and sending so many Americans to an early grave.
I believe that because of this operation, the American people are safer – safer
from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized
crime poses a serious threat to our national and economic security,” said
Acting Director Andrew McCabe of the FBI. “Whether they operate in broad
daylight or on the dark net, we will never stop working to find and stop these
criminal syndicates. We want to thank
our international partners and those at the Department of Justice, the DEA and
the IRS-CI for their hard work in demonstrating what we can do when we stand
together.”
“The so-called anonymity of
the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the
DEA. “We will find and prosecute drug traffickers who set up shop there, and
this case is a great example of our commitment to doing exactly that. More to
come.”
“AlphaBay was the world’s
largest underground marketplace of the dark net, providing an avenue for
criminals to conduct business anonymously and without repercussions,” said
Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both
domestically and abroad – IRS-CI used its unique financial and cyber expertise
to help shine a bright light on the accounts and customers of this shadowy
black marketplace, and we intend to continue pursuing these kinds of criminals
no matter where they hide.”
“This ranks as one of the
most successful coordinated takedowns against cybercrime in recent years,” said
Executive Director Rob Wainwright of Europol. “Concerted action by law
enforcement authorities in the United States and Europe, with the support of
Europol, has delivered a massive blow to the underground criminal economy and
sends a clear message that the dark web is not a safe area for criminals. I pay
tribute to the excellent work of the United States and European authorities for
the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden
service on the “Tor” network, and utilized cryptocurrencies including Bitcoin,
Monero and Ethereum in order to hide the locations of its underlying servers
and the identities of its administrators, moderators, and users. Based on law
enforcement’s investigation of AlphaBay, authorities believe the site was also
used to launder hundreds of millions of dollars deriving from illegal
transactions on the website.
An investigation conducted by
FBI Atlanta and the U.S. Attorney’s Office in the Northern District of Georgia
identified an AlphaBay staffer living in the United States. That investigation
is ongoing.
The investigation into
AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there
have been multiple overdose deaths across the country attributed to purchases
on the site.
According to a complaint
affidavit filed in the District of South Carolina against Theodore Vitality
Khleborod and Ana Milena Barrero, an investigation into an overdose death on
February 16, in Portland, Oregon, involving U-47700, a synthetic opioid,
revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero.
According to another complaint affidavit filed in the Middle District of
Florida against Jeremy Achey, an investigation into a fentanyl overdose death
in Orange County, Florida, on February 27, revealed that the lethal substance
was purchased on AlphaBay from Achey.
Charges contained in an
indictment and/or complaint are merely allegations, and the defendant is
presumed innocent unless and until proven guilty beyond a reasonable doubt in a
court of law.
This operation to seize the
AlphaBay site coincides with efforts by Dutch law enforcement to investigate
and take down the Hansa Market, another prominent dark web market. Like
AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic
chemicals, malware, counterfeit identification documents, and illegal services.
The administrators of Hansa Market, along with its thousands of vendors and
users, also attempted to mask their identities to avoid prosecution through the
use of Tor and digital currency. Further information on the operation against
the Hansa Market can be obtained from Dutch authorities.
The operation to seize
AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy
Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A.
Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A.
Talbert for the Eastern District of California; Acting Director Andrew G.
McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol
Executive Director Robert Mark Wainwright.
The case is being
investigated by the FBI including FBI Sacramento Field Office and DEA, with
substantial assistance from the IRS-CI. U.S. Immigration and Customs
Enforcement’s Homeland Security Investigations also assisted in the
investigation. The case against Cazes was prosecuted by Assistant U.S.
Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office
for the Eastern District of California, and Trial Attorneys Louisa K. Marion
and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual
Property Section. Substantial assistance was provided by the Department of
Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law
enforcement agencies provided substantial assistance in the operation to seize
AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian
Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s
National Crime Agency, Europol, and French National Police.
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