The US Treasury Department and the Department of Justice launched a large-scale operation targeting illegal activities on the darknet. The operation, named SpecTor, involved cooperation from 10 countries. During the raids led by the U.S., authorities arrested 270 individuals. 

Security forces seized 2 tons of drugs, over 180 firearms, and more than $200 million in cryptocurrency. The confiscated cryptocurrencies included Bitcoin (BTC), Monero (XMR), and USDT. Officials closely monitored USDT transfers, blocked crypto wallets, and tracked transaction chains through blockchain analysis. 

The Office of Foreign Assets Control (OFAC), under the U.S. Treasury, sanctioned Iranian national Behrouz Parsarad, who was identified as the operator of the darknet market Nemesis Market. Parsarad’s wallet addresses were publicly disclosed, and virtual asset service providers blocked these addresses. 

Fentanyl Payments Made Through Crypto 

Chainalysis reported in its March 2025 report that Chinese fentanyl precursor suppliers received $5.5 million USDT from U.S. cartel couriers. These transactions were conducted on-chain via stablecoins. Chainalysis called this the “on-chain fentanyl economy.”  Authorities revealed that between 2018 and 2023, transfers to China totaled $37.8 million. Most transactions were detected via centralized exchanges and non-custodial wallets, with blockchain analytics tools uncovering these activities. 

The U.S. Department of Homeland Security also confirmed that crypto payments reached Chinese suppliers. Most payments were small and frequent. The Treasury’s tracking of crypto transfers dealt a financial blow to drug trafficking. Blockchain transactions provided critical data to law enforcement, allowing them to map addresses used in transfers. 

U.S. Attorney General Merrick Garland stated: 

“Hiding on the darknet is no longer enough. Crypto transfers are being tracked. Criminal proceeds are being identified.” 

The US Treasury Department of Justice emphasized this operation sends a clear message to criminals. Meanwhile, the Treasury listed crime-linked wallets and imposed new sanctions. OFAC requested crypto platforms to block addresses on the list. Blockchain analytics firms documented illegal transactions with crypto monitoring tools. Attempts to hide transaction traffic failed due to blockchain transparency, leading to this resolution. 

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They expressed alarm over DOJ’s lack of attention to crypto mixers, labeling them as “essential tools for cybercriminals.”

DOJ Says It’s Not a Regulator

On April 7, DOJ official Todd Blanche defended the shutdown with the claim:

“The Department of Justice is not a digital assets regulator.”

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Democrats disagreed strongly, stating that a passive stance toward technology used in major crimes is “nonsensical.” They also cited DOJ’s apparent refusal to pursue Bank Secrecy Act violations, creating what they describe as a systemic vulnerability in the digital asset space.

Trump Family’s Crypto Links Under Scrutiny

The senators also pointed to potential conflicts of interest involving Donald Trump and his family. According to the letter, the DOJ’s actions may be tied to Trump’s crypto ambitions.

The Trump-backed World Liberty Financial is launching a stablecoin, while Eric Trump and Donald Trump Jr. are planning a new crypto mining company, American Bitcoin.

In the letter, they wrote:

“Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny.”

They requested a full staff-level briefing from the DOJ by May 1 to explain the rationale behind the closure.

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The United States Department of Justice announced that Hay and Mayo were charged with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. They allegedly misled investors with false roadmaps and made materially false statements about the projects, ultimately abandoning them after raising millions from unsuspecting backers.

Misleading NFT Projects

The indictment claims that the duo promoted the Vault of Gems NFT project as the “first NFT project pegged to a hard asset.” However, after raising funds, they abandoned the project, leaving investors with nothing. Prosecutors also claimed they made threats when someone tried to expose their fraudulent activities.

The Justice Department stated that the two harassed a project manager who attempted to expose their role in the Faceless NFT project. The scammers reportedly used intimidation tactics to conceal their involvement, falsely claiming others as the project’s owners.

Fraudulent Tactics Across Multiple Projects

The charges cover multiple digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. The Department of Justice has vowed to work with law enforcement to combat fraud in the crypto and NFT space, which has been a target for fraudulent actors seeking to exploit new technologies for financial gain.

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SEC’s charges against Binance are as follows:

• Changpeng Zhao, the CEO and founder of Binance, and the exchange’s U.S. arm, artificially inflated trading volumes
• Diverted customer funds
• Did not restrict U.S. customers from accessing its platform
• Misled investors about market surveillance controls
• Facilitated the illegal trading of several cryptocurrencies that the SEC classified as unregistered securities

It was also conveyed that there is no evidence of fraud behind so many charges.

Binance agreed to pay $4.3 billion to settle with the Justice Department and the Commodity Futures Trading Commission for illegal financial violations.

Although Changpeng Zhao accepted the lawsuit and agreed to pay the requested money, the rest of the case continues with Binance.

(SEC) A journalist who closely follows the case said the following:

“Binance has reached agreements with other organizations, including the DOJ and the CFTC. However, it is unwilling to settle with the SEC. Because doing so would mean acknowledging that the tokens mentioned in the case are securities. This could have a more significant impact on Binance’s business model than anti-money laundering compliance issues.”

Another journalist who also closely follows the case referred to the SEC’s jurisdiction, saying:

“Binance has a strong argument that the SEC has exceeded its jurisdiction and has not proven fraud, and it wants to try its luck in court because it believes in that.”

The identities of these two sources were not disclosed due to the confidentiality of legal proceedings.

The SEC ‘s lawsuit against Binance is one of many lawsuits the regulator has filed against cryptocurrency companies in recent years.

The SEC was known for winning all of its lawsuits against the cryptocurrency community. However, it partially lost its first major lawsuit, the Ripple (XRP) case. The SEC initially focused on companies that sell digital tokens. However, it has turned to firms that offer trading platforms and exchange activities and act as broker-dealers.

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