AlphaBay Moderator Paid in Bitcoin Sentenced To 11 Years In Prison
One of the moderators running the giant darknet marketplace AlphaBay has been sentenced to 11 years in prison. Bryan Connor Herrell received payments in Bitcoin for his moderator position, which he used to settle disputes between buyers and sellers.
AlphaBay’s Moderator Sentenced To 11 Years In Prison
The statement from the US Department of Justice said that Herrell operated under two nicknames on AlphaBay – “Penissmith” and “Botah.” One of his primary responsibilities as the marketplace’s moderator was to settle disputes between vendors and buyers.
However, the DOJ also claimed that he served as a “scam watcher,” meaning that he provided a dedicated service to monitor attempts to defraud AlphaBay users. In return for his work on the platform, Herrell was paid in Bitcoin.
US District Court Judge Dale Drozd sentenced the 26-year-old Herrell to 11 years in prison. Following the order, US Attorney McGregor Scott commented that “this sentence serves as further proof that criminals cannot hide behind technology to break the law.”
“Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online – you will be caught. This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.” – Scott warned.
AlphaBay’s Rise And Demise
Officially launched in late 2014, AlphaBay had over 200,000 users less than a year later and soon became the world’s largest online drug marketplace. Apart from selling illicit substances, vendors and buyers conducted “hundreds of thousands” of illegal transactions for guns, credit card numbers, and even stolen identity information.
AlphaBay employed the open-source Tor network allowing anonymous communications, while the funds were transmitted with various forms of cryptocurrencies, including Bitcoin.
However, the explosive growth of users and reaching almost $1 million worth of transactions per day in 2017, drew the attention of law enforcement agencies. Ultimately, this led to the seizure of AlphaBay in the summer of 2017 after a thorough investigation conducted by the US with the assistance of authorities from Thailand, the Netherlands, Canada, the UK, France, and more.
At a US request, Thai authorities arrested Alexandre Cazes in July 2017. The 25-year-old going by the pseudonyms “Alphao2” and “Admin” was the alleged creator and administrator of AlphaBay.
He was charged in an indictment 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, and more.
However, before facing any sentencing, Cazes was found dead in custody in Thailand. Local authorities concluded that it was a suicide as he was hanging from a towel in his bathroom cell.
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