Bitcoin News Today: Privacy Coins' Anonymity Foiled: Prosecutors Trace $7.9M Dark Web Drug Laundering

Manhattan prosecutors have achieved convictions in a prominent dark web narcotics case, where a group funneled $7.9 million using cryptocurrencies such as

and Monero, as reported by . The FireBunnyUSA operation, which ran from 2019 to 2022, distributed more than 10,000 parcels containing drugs like cocaine, MDMA, and ketamine throughout the United States, utilizing crypto assets to mask their transactions. The network converted Bitcoin earnings into Monero to enhance anonymity, then exchanged the funds back through various platforms to further obscure their origins.

This case highlights both the benefits and risks of blockchain technology, which can support secure finance but also facilitate illegal schemes. Manhattan District Attorney’s Office investigators made 11 covert purchases, resulting in the capture of five suspects, including leader Nan Wu, who was sentenced to at least 6.5 years in prison. Prosecutors noted the operation’s complexity, with $3.1 million laundered via crypto exchanges and another $2.4 million transferred into Chinese yuan overseas, according to the report.

The increasing use of privacy coins like Monero has attracted fresh attention as their market influence grows. Monero (XMR) recently overtook

(SHIB) in market value, reaching $6.11 billion as of October 2025, based on . This trend points to rising interest in privacy-centric cryptocurrencies, despite ongoing regulatory hurdles. Over the last week, XMR’s price rose 4.34%, while SHIB dropped by 4.83%. Experts observe that although privacy coins make investigations harder, their permanent ledgers can still provide evidence for prosecutions like the FireBunnyUSA case.

Andrew Fierman, who leads national security intelligence at Chainalysis, remarked that privacy coins are still a minor player in large-scale illegal finance. “The majority of criminal transactions continue to use mainstream cryptocurrencies like Bitcoin,” he explained, noting that privacy coins are difficult to convert to cash since major exchanges have removed them. The Manhattan prosecution reflects broader global patterns, such as Operation RapTor’s $200 million crypto confiscation and India’s crackdown on a Monero-based LSD ring.

The FireBunnyUSA verdict also points to the Federal Reserve’s expanding involvement in crypto regulation. Recent indications from the Fed about considering payment accounts for crypto businesses have caused market swings, with Bitcoin climbing to $112,000 as traders anticipate clearer rules, according to

. Nevertheless, the case shows that even with advanced privacy measures, authorities can still follow digital footprints. Prosecutors confiscated 20 BTC and 3,297 XMR as part of the asset seizure.