California man convicted in cryptocurrency money laundering conspiracy and for importing controlled substances
2024-03-26 · Press release
Mentions 1960 Crypto Verified 1960
Summary: A San Francisco, California man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
TYLER, Texas – A San Francisco, California man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
John Khuu, 28, pleaded guilty to conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and importation of MDMA before U.S. Magistrate Judge John D. Love on March 26, 2024.
According to information presented in court, Khuu conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency. Khuu imported and distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets (DWMs) and elsewhere to customers across the United States. Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin (BTC), from their DWM customer accounts to one of Khuu’s vendor accounts. Khuu and his co-conspirators traded the BTC for U.S. currency and laundered and transmitted the proceeds through hundreds of transactions and dozens of financial accounts.
Khuu was indicted on May 18, 2022, in the Eastern District of Texas and charged with conspiracy to commit money laundering. On August 17, 2022, Khuu was indicted in the Northern District of California and charged with unlawful importation of a Schedule I controlled substance. On August 19, 2022, agents arrested Khuu pursuant to both warrants at a residence in Garden Grove, CA.
Khuu faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The cases were investigated by the U.S. Secret Service, U.S. Postal Inspection Service, and Homeland Security Investigations, San Francisco, and were prosecuted by Assistant U.S. Attorneys D. Ryan Locker and Nathaniel C. Kummerfeld for the Eastern District of Texas, and Assistant U.S. Attorney Charles Bisesto for the Northern District of California.
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- press_release_url
- https://www.justice.gov/usao-edtx/pr/california-man-convicted-cryptocurrency-money-laundering-conspiracy-and-importing
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 1275 | Damien M. Diggs | prosecutor | U.S. Attorney | U.S. Attorney's Office for the Eastern District of Texas | Texas | |||
| 1276 | John Khuu | defendant | California | 28 | pleaded guilty | |||
| 1277 | John D. Love | judge | U.S. Magistrate Judge | U.S. Court for the Eastern District of Texas | Texas | |||
| 1278 | D. Ryan Locker | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office for the Eastern District of Texas | Texas | |||
| 1279 | Nathaniel C. Kummerfeld | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office for the Eastern District of Texas | Texas | |||
| 1280 | Charles Bisesto | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office for the Northern District of California | California |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 806 | U.S. Attorney's Office for the Eastern District of Texas | prosecution | Prosecuted the case with Assistant U.S. Attorneys D. Ryan Locker and Nathaniel C. Kummerfeld | |||
| 807 | U.S. Attorney's Office for the Northern District of California | prosecution | Prosecuted the case with Assistant U.S. Attorney Charles Bisesto | |||
| 808 | U.S. Secret Service | investigation | Investigated the case as part of the OCDETF operation | |||
| 809 | U.S. Postal Inspection Service | investigation | Investigated the case as part of the OCDETF operation | |||
| 810 | Homeland Security Investigations | HSI | investigation | San Francisco | Investigated the case as part of the OCDETF operation |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 631 | conspiracy to commit money laundering | John Khuu | pleaded guilty | 0 | enrichment | |||||||||
| 633 | importation of MDMA | John Khuu | pleaded guilty | 0 | enrichment | |||||||||
| 632 | conspiracy to operate an unlicensed money transmitting business | John Khuu | pleaded guilty | 1 | enrichment | 2026-09-16T19:45:55+00:00 | ||||||||
| 2589 | operate an unlicensed money transmitting business, and importation of MDMA before U | 1 | press | 2026-09-16T19:45:55+00:00 | ||||||||||
| 2590 | unlicensed money transmitting business, and importation of MDMA before U | 1 | press | 2026-09-16T19:45:55+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 339 |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 132 | individual | customers who purchased counterfeit pharmaceutical pills and controlled substances | United States | purchased counterfeit pharmaceutical pills and controlled substances through dark web markets |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 133 | A San Francisco, California man has pleaded guilty to federal violations in the Eastern District of Texas | Damien M. Diggs | U.S. Attorney | U.S. Department of Justice | statement | Announcement of guilty plea | Official confirmation of charges and guilty plea by the U.S. Attorney's office |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 725 | Money Laundering | Laundering drug trafficking proceeds through cryptocurrency transactions. | Central to the case as the primary method of concealing illicit funds. | 18 U.S.C. § 1956, 18 U.S.C. § 1960 | National | Recent development | Law enforcement, Financial institutions, Victims |
| 726 | Cryptocurrency | Use of Bitcoin (BTC) to facilitate drug transactions and money laundering. | Key tool enabling anonymous and cross-border financial operations. | 18 U.S.C. § 1960 | National | Recent development | Law enforcement, Financial institutions, Dark web market users |
| 727 | Controlled Substances Importation | Importation and distribution of MDMA and counterfeit pharmaceuticals via dark web markets. | Core criminal activity funding the money laundering scheme. | 21 U.S.C. § 841, 21 U.S.C. § 846, 21 U.S.C. § 952 | International | Recent development | Law enforcement, Public health agencies, Victims |
| 728 | Unlicensed Money Transmitting | Operating an unlicensed money transmitting business to launder drug proceeds. | Violates federal regulations and enables illicit financial flows. | 18 U.S.C. § 1960 | National | Recent development | Law enforcement, Financial regulators, Financial institutions |
| 729 | Organized Crime Task Forces | Involvement of OCDETF in dismantling the criminal organization. | Highlights multi-agency collaboration to combat high-level crime. | National | Historical trend | Law enforcement agencies, Prosecutors, Government agencies |
CourtListener / RECAP
Linked dockets
- CL #65407260 6:22-cr-00062 (txed) Weak match
Documents
| Entry | Description | OCR | Download |
|---|---|---|---|
| #76 desc | JUDGMENT as to John Khuu (1), Count 1 of the Indictment and 3s of the Information: Dismissed; Count 1s of the Information: 87 months imprisonment concurrent with count 2s, 3 years supervised release concurrent with count 2s, fine waived, $100 special assessment,; Count 2s of the Information: 60 months imprisonment concurrent with count 1s, 3 years supervised release concurrent with count 1s, fine waived, $100 special assessment, remanded to USMS. Signed by District Judge J. Campbell Barker on 3/13/2025. (ndc) | none | none |
| #78 desc | FINAL ORDER OF FORFEITURE as to John Khuu. Signed by District Judge J. Campbell Barker on 3/13/2024. (ndc) | none | none |
| #75 desc | Minute Entry for proceedings held before District Judge J. Campbell Barker: Sentencing held on 3/12/2025 from 10:15 - 10:23 am for John Khuu (1), Count 1 of the Indictment and 3s of the Information: Dismissed; Count 1s of the Information: 87 months imprisonment concurrent with count 2s, 3 years supervised release concurrent with count 2s, fine waived, $100 special assessment,; Count 2s of the Indictment: 60 months imprisonment concurrent with count 1s, 3 years supervised release concurrent with count 1s, fine waived, $100 special assessment, remanded to USMS. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. Court Reporter - Shawnie Archuleta. (ndc) | none | none |
| #73 desc | CORRECTED NOTICE of Declaration of Publication by USA as to John Khuu re [57] Notice (Other) (Locker, Dan) | none | none |
| #74 desc | CORRECTED [58] FINAL MOTION for Forfeiture of Property filed by USA by USA as to John Khuu. (Attachments: # (1) Proposed Order Final Order of Forfeiture)(Locker, Dan) Modified on 3/10/2025 to correct docket text. (wea). | none | none |
| entry desc | NOTICE OF HEARING as to John Khuu. Sentencing set for 3/12/2025 at 10:00 AM before District Judge J. Campbell Barker. The parties must file sentencing memoranda, any character letters, any departure and variance motions, any objections, waivers before sentencing, and any other documents relating to the sentencing by 3/5/2025. Departure and variance motions should be filed separately as motions on the docket. If either party raises an objection, a variance, or a departure, then a response is due by 3/7/2025 at 12:00 PM. (ndc) | none | none |
| #69 desc | Revised Final Presentence Investigation Report (Sealed) (including addendum) as to John Khuu. (Clerk's Note: Defendant's counsel is asked to advise Defendant that the clerk is not authorized to accept, prior to sentencing, payment for any monetary penalty described in the PSR absent an order to do so. Payment should not be remitted via pay.gov or any other method prematurely.) (Attachments: # (1) Supplement Cover Letter)(Biesheuvel, Jenni) | none | none |
| #68 desc | ORDER ACCEPTING REPORT AND RECOMMENDATIONS as to John Khuu for [67] Findings of Fact/Recommendation on Guilty Plea. Signed by District Judge J. Campbell Barker on 1/14/2025. (ndc) | none | none |
| #67 desc | FINDINGS OF FACT AND RECOMMENDATION on Guilty Plea Before the United States Magistrate Judge as to John Khuu. Signed by Magistrate Judge John D. Love on 1/9/2025. (wea) | none | none |
| #63 desc | WAIVER OF INDICTMENT by John Khuu (srb) | none | none |
| #64 desc | Sealed Plea Agreement as to John Khuu (srb) | none | none |
| #66 desc | Factual Basis by USA as to John Khuu. (srb) | none | none |
| #62 desc | Minute Entry for proceedings held before District Judge J. Campbell Barker: Sentencing called, not held as to John Khuu held on 1/8/2025 from 10:50 - 10:58. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. Court Reporter - Ed Reed. The court did not accept the plea. Defendant withdrew the guilty plea. (ndc) | none | none |
| #60 desc | Minute Entry for proceedings held before Magistrate Judge John D. Love: Change of Plea Hearing as to John Khuu held on 1/8/2025 from 03:20 - 03:47 Plea entered by John Khuu (1) Guilty Count 1s,2s. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. (Court Reporter - Digital Recording) (srb) | none | none |
| #60 desc | Minute Entry for proceedings held before Magistrate Judge John D. Love: Change of Plea Hearing as to John Khuu held on 1/8/2025 from 03:20 - 03:47 Plea entered by John Khuu (1) Guilty Count 1s,2s. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. (Court Reporter - Digital Recording) (srb) | none | none |
| #62 desc | Minute Entry for proceedings held before District Judge J. Campbell Barker: Sentencing called, not held as to John Khuu held on 1/8/2025 from 10:50 - 10:58. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. Court Reporter - Ed Reed. The court did not accept the plea. Defendant withdrew the guilty plea. (ndc) | none | none |
| #66 desc | Factual Basis by USA as to John Khuu. (srb) | none | none |
| #64 desc | Sealed Plea Agreement as to John Khuu (srb) | none | none |
| #63 desc | WAIVER OF INDICTMENT by John Khuu (srb) | none | none |
| #67 | FINDINGS OF FACT AND RECOMMENDATION on Guilty Plea Before the United States Magistrate Judge as to John Khuu. Signed by Magistrate Judge John D. Love on 1/9/2025. (wea) | none | done |
| #68 | ORDER ACCEPTING REPORT AND RECOMMENDATIONS as to John Khuu for [67] Findings of Fact/Recommendation on Guilty Plea. Signed by District Judge J. Campbell Barker on 1/14/2025. (ndc) | none | done |
| #69 desc | Revised Final Presentence Investigation Report (Sealed) (including addendum) as to John Khuu. (Clerk's Note: Defendant's counsel is asked to advise Defendant that the clerk is not authorized to accept, prior to sentencing, payment for any monetary penalty described in the PSR absent an order to do so. Payment should not be remitted via pay.gov or any other method prematurely.) (Attachments: # (1) Supplement Cover Letter)(Biesheuvel, Jenni) | none | none |
| 430708879 desc | NOTICE OF HEARING as to John Khuu. Sentencing set for 3/12/2025 at 10:00 AM before District Judge J. Campbell Barker. The parties must file sentencing memoranda, any character letters, any departure and variance motions, any objections, waivers before sentencing, and any other documents relating to the sentencing by 3/5/2025. Departure and variance motions should be filed separately as motions on the docket. If either party raises an objection, a variance, or a departure, then a response is due by 3/7/2025 at 12:00 PM. (ndc) | none | none |
| #74 desc | CORRECTED [58] FINAL MOTION for Forfeiture of Property filed by USA by USA as to John Khuu. (Attachments: # (1) Proposed Order Final Order of Forfeiture)(Locker, Dan) Modified on 3/10/2025 to correct docket text. (wea). | none | none |
| #73 desc | CORRECTED NOTICE of Declaration of Publication by USA as to John Khuu re [57] Notice (Other) (Locker, Dan) | none | none |
| #75 | Minute Entry for proceedings held before District Judge J. Campbell Barker: Sentencing held on 3/12/2025 from 10:15 - 10:23 am for John Khuu (1), Count 1 of the Indictment and 3s of the Information: Dismissed; Count 1s of the Information: 87 months imprisonment concurrent with count 2s, 3 years supervised release concurrent with count 2s, fine waived, $100 special assessment,; Count 2s of the Indictment: 60 months imprisonment concurrent with count 1s, 3 years supervised release concurrent with count 1s, fine waived, $100 special assessment, remanded to USMS. Dft Location: Custody. Attorney Appearances: AUSA - Ryan Locker; Defense - Clint Broden. No exhibits. Court Reporter - Shawnie Archuleta. (ndc) | none | done |
| #78 desc | FINAL ORDER OF FORFEITURE as to John Khuu. Signed by District Judge J. Campbell Barker on 3/13/2024. (ndc) | none | none |
| #76 | JUDGMENT as to John Khuu (1), Count 1 of the Indictment and 3s of the Information: Dismissed; Count 1s of the Information: 87 months imprisonment concurrent with count 2s, 3 years supervised release concurrent with count 2s, fine waived, $100 special assessment,; Count 2s of the Information: 60 months imprisonment concurrent with count 1s, 3 years supervised release concurrent with count 1s, fine waived, $100 special assessment, remanded to USMS. Signed by District Judge J. Campbell Barker on 3/13/2025. (ndc) | none | done |
| #79 desc | Notice of Attorney Appearance - USA | none | none |
| #80 desc | Forfeiture of Property | none | none |
| #81 desc | Order on Motion for Forfeiture of Property | none | none |
| #83 desc | Forfeiture of Property | none | none |
| #82 desc | Notice (Other) | none | none |
| #84 desc | Order on Motion for Forfeiture of Property | none | none |
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