New Jersey Jury Convicts Man in Crypto-Linked Drug and Money Laundering Scheme

• Panzera and associates used wire transfers and cryptocurrency to finance fentanyl distribution across New Jersey.
• Homeland Security, FBI, IRS, and U.S. Customs traced illicit funds linked to international drug suppliers.
• Panzera faces at least ten years in prison, reinforcing concerns over cryptocurrency’s use in organized crime.

A New Jersey jury has convicted William Panzera for his involvement in a long-running drug trafficking and money laundering network. The operation, which lasted six years, relied on wire transfers and cryptocurrency transactions to finance the distribution of fentanyl-related substances across the state.

Drug Network and Crypto Transactions

Panzera, together with his associates, established their business by importing Chinese-made synthetic opioids, which they distributed across New Jersey. The drugs that included furanyl fentanyl were packaged in big quantities or hidden inside fake pharmaceutical pills. 

This operation produced substantial profits that the criminals distributed through corded payment systems together with crypto assets to support their international drug-source network. The investigation took place at the Newark division of Homeland Security Investigations (HSI) with support from the FBI, IRS and U.S. Customs. 

The investigation revealed that criminal funds had links to international entities, which strengthened fears about crypto-based financial wrongdoing. The court will give Panzera his sentencing date on June 25. 

The court requires Panzera to serve at least ten years in prison while drug trafficking might lead to a life sentence. The sentencing procedures will determine his punishment for money laundering conspiracy to reach up to 20 years imprisonment.

Cryptocurrency’s Role in Criminal Activities

Panzera’s case adds to the growing body of investigations linking cryptocurrency to organized crime. While fiat currency remains the dominant medium for money laundering, digital assets provide pseudonymity and cross-border accessibility that appeal to criminals.

Current judicial proceedings indicate similar patterns to those observed above. Russian nationals Sergey Ivanov and Timur Shakhmametov received indictment charges when they enabled almost $800 million worth of criminally generated cryptocurrency transactions through ransomware schemes. 
A father, together with his son, received sentences for using Bitcoin to wash drug trade money. The father, at age 72, and his son, who was 38 years old, accumulated more than 9,000 BTC worth $150 million from selling counterfeit Xanax pills at darknet marketplaces.