A notorious Silk Road drug trafficker has been charged with laundering the proceeds of his illicit activities through cryptocurrency, federal authorities announced today.
Matthew Gillum, 40, of Loomis, was hit with a nine-count indictment by a federal grand jury in the Eastern District of California, charging him with engaging in monetary transactions in property derived from specified unlawful activity, U.S. Attorney Phillip A. Talbert stated.
Gillum previously served an 108-month prison sentence for a federal drug trafficking offense, which he completed in 2024. However, upon his release, he allegedly attempted to launder the drug trafficking proceeds through the legitimate financial system using Bitcoin.
The case is the result of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation, with assistance from the U.S. Postal Inspection Service, the U.S. Customs and Border Protection, and the Sacramento County Sheriff’s Office.
Assistant U.S. Attorney Justin Lee is prosecuting the case, which carries a maximum statutory penalty of 10 years in prison and a $250,000 fine, or twice the amount of money laundered.
If convicted, Gillum will face a maximum sentence of 10 years behind bars and a $250,000 fine, or twice the amount of money laundered. Any sentence, however, will be determined by the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines.
The charges against Gillum are merely allegations, and he is presumed innocent until proven guilty beyond a reasonable doubt. The case will now proceed to trial, where the prosecution will seek to prove the defendant’s guilt beyond a reasonable doubt.
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Key Facts
- State: California
- Category: Drug Trafficking|Fraud & Financial Crimes|Cybercrime
- Source: DOJ Press Release â†â€â€
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