Silk Road Vendor Sentenced to 42 Months in Prison

A 61-year-old man from Columbus, Ohio, was sentenced to 42 months in prison for laundering the proceeds of his darkweb drug trafficking operation.

According to court records, Hugh Brian Haney sold a variety of drugs worldwide through the “Pharmville” vendor account on Silk Road in 2011 and 2012. In 2018 Haney attempted to cash out $19 million in bitcoin through an undisclosed exchange and in the process triggered a series of events that led to his arrest.

You can read the previous article about Pharmville here: Silk Road Vendor “Pharmville” Charged for Laundering $19 Million in Bitcoin

Haney as pictured in his mugshot | Butler County Jail

Haney as pictured in his mugshot | Butler County Jail

Haney started withdrawing his funds in November 2017 after he had opened an account at a cryptocurrency exchange. When opening the account Haney gave the exchange his name, social security number, residential address, photo ID, and verified his email address.

Between January 26 and February 1, 2018, Haney transferred a total of approximately 1,571.5 Bitcoins and approximately 1,572.7 Bitcoin Cash to the exchange. He later exchanged the cryptocurrency for a total of $19,147,057. The exchange asked Haney to explain how he had acquired the cryptocurrency. In a series of messages, Haney told the exchange that he had acquired the bitcoins from his mining activities and an initial investment of $10,000.

Count One Money Laundering

Count One Money Laundering

Unsatisfied by Haney’s explanation the exchange froze his account on May 30 and launched an internal investigation. The exchange also reported the case to federal authorities. On November 9, a United States Magistrate Judge issued a warrant that led the seizure of Haney’s funds in the cryptocurrency exchange. The agents also seized the more than $19 million from a custodial account at an undisclosed bank.

After tracing Haney’s bitcoins to their source and analyzing Silk Road’s Server Information the federal agents determined that Haney had received at least 3,892.9 Bitcoins directly or indirectly from Silk Road. Of the total received, Haney retained 1,392.9 in his wallet to the end of January 2012.

On December 9, a United States Magistrate Judge signed a search warrant for Haney’s residence. During execution of the search warrant, federal agents seized several electronic devices including a Apple laptop. On the laptop, forensic investigators found ‘numerous’ files including word documents, that referred to the “Pharmville community from Silk Road.”

On July 17, 2019, an arrest warrant against Haney was issued. Federal agents made the arrest July 18. On November 6, Haney pleaded guilty to one count of money laundering and one count of engaging in a financial transaction in criminally derived property.

In addition to the 3 and a half years in prison, United States District Judge Jed S. Rakoff sentenced Haney to three years of supervised release and ordered him to forfeit approximately $19 million and pay a fine of $10,000.

Criminal Complaint

59f2d750 Mon, Feb 17, 2020

This has to be unequivocally the stupidest thing i have ever seen in my life. You get away scott free. And fuck it all up because you try to clean 19 million dollars worth of bitcoin in 1 go. I dont understand how some people make it so long. Disgusting.

3e383e00 Mon, Feb 17, 2020

Yeah this guy was dumb

23278d60 Mon, Feb 17, 2020

Look in his eyes. The eyes of a man who lived a life full of regret. I'd regret making $20 mil and blowing that ticket away too. Tard. Feels bad man.

Kenny Rogers
f77e26c0 Tue, Feb 18, 2020

Told my brother not to mess with those bitcoins, even had him play the Gambler on repeat

Frosty the snowman
29293d20 Tue, Feb 18, 2020

OMG What a Tard. 19million. Gives the exchange all his details!- Supertard! Gives them a photo!-Ultratard! Probably gave them his IP also - Megatard! Gave them possibly the worst excuse possible as to where the BTC came from- increditard. Sent all of it to an exchange! - Totally retarded. I am reeling over this guy for the next week. His face should be on all darknet websites as a meme for how to be a retard.

7b7008d0 Tue, Feb 18, 2020

He’s got to know when to hold them.

Know when to fold them.

Know when to walk way.

Know when to run.

af753140 Tue, Feb 18, 2020

Yea this is just fucking stupid of all the ways to buy/cashout this is the best he could do? I guess ya gotta give the elderly a break, man couldn't keep it up. 42m ain't too bad. for 19m.

38825750 Tue, Feb 18, 2020

I know tons of people are criticizing this guy but all things considered, this guy is the fucking shit. The man made $40 million in less than a year selling oxys and hydros in 1 year and only gets a 3 year prison sentence and only has to forfeit half the money. Who knows how much he spent/laundered successfully before he got caught but i'm guessing it was probably a lot more than $20 mill. The braindead political slave federal agents aren't known for their competence at basic math but there are many dark web vendors that have gotten more than 5x his sentence and made not even close to that kind of profit. Lets also not forget this guy was using a Macbook, (which he was still using when they seized it so that means it was ~6 years old at least) the old man probably isn't too much of a computer genius

Woopsie poopsie
9fedaa10 Tue, Feb 18, 2020

Boomer got boomed

475cf080 Tue, Feb 18, 2020

he didn’t make that money in a year, he left it alone since 2012 when silk road was shut down. the dude got cocky and tried to remove it all when in 2018 he found out he was a millionaire.

this dude is dumb as fuck and deserves what he got.

1dc54320 Tue, Feb 18, 2020

the guy is dumb on cashout but nobody like this deserve prison and gov stealing

2b9ae180 Tue, Feb 18, 2020

maybe a good title for a book? "Dummies Guide to Drug dealing" maybe thats already been published elsewhere though. links appreciated.

3f9dd580 Tue, Feb 18, 2020

Does anybody know where he shipped from? I'm pretty sure I ordered from him once.

f5598740 Wed, Feb 19, 2020

He should of cashed out slowly, using BTC ATMs which dont ask for ID.

5c8b74b0 Wed, Feb 19, 2020

Such BTC tracing busts possible using monero?

e8a71870 Wed, Feb 19, 2020

What the fuck. He deserved a life sentence for his stupidity

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