Can You Be Federally Prosecuted for Buying Drugs With Cryptocurrency?

 Posted on March 20, 2025 in Federal Crimes

Facing a federal drug charge is already daunting. When you factor in cryptocurrency, the need to build a strong defense becomes even more relevant. These cases sometimes extend beyond the national border and require a well-versed understanding of the laws that apply. An Illinois federal drug crimes defense attorney may be able to help you better understand the laws governing your case and what you need to do to fight charges against you.

Is Buying Drugs With Cryptocurrency a Federal Crime?

Several types of drug offenses fall under the umbrella of federal crime, and manufacturing and trafficking are the most common federal drug charges connected to the exchange of cryptocurrency. Any time those crimes cross state lines, they fall under federal jurisdiction. When it comes to drug trafficking across state or national borders, anyone knowingly or intentionally manufacturing, distributing, or dispensing drugs is breaking federal law regardless of the financial transaction method used.

How Anonymous Is Cryptocurrency?

A common misconception about cryptocurrencies like Bitcoin is that transactions are completely untraceable. While those using crypto can expect a degree of anonymity, the movement of crypto is still traceable. More importantly, it can remain traceable for an extended period.

Research shows that it is actually not too difficult to dredge up Bitcoin transactions from years past. In fact, a study at Qatar University revealed that connecting someone’s Bitcoin payment on the dark web was sometimes traceable to the user’s public account. Occasionally, authorities may be able to link a person’s public account to the site used to make the illicit transaction. Ultimately, the security of cryptocurrency is surprisingly low.

How Are Police Tracing Drug Purchases Made With Cryptocurrency?

Despite the holes in crypto security, law enforcement still faces challenges when gathering evidence for federal drug crimes involving cryptocurrency. However, blockchain analytics have emerged as a powerful tool in police investigation, with core functions that include:

• Mapping transactions to reveal connections among different parties

• Clustering to identify crypto wallets belonging to people participating in illicit activities

• Pinpointing patterns in transactions that indicate criminal behavior

• Correlating data to create criminal profiles

• Tracing how funds move across varying blockchains

• Building timelines of criminal activity using transaction timestamps

The process is sophisticated, but what it fundamentally means is that law enforcement can uncover the identities of people making drug transactions through blockchain technology. If they can trace a drug-related crime to you through a crypto transaction, you will need to start planning your criminal defense.

Call Today To Schedule a Free Consultation With a Chicago, IL Criminal Defense Attorney

Federal drug crimes are complex and serious, especially when they involve the ever-evolving world of cryptocurrency. If you are facing a drug-related charge from the government, an experienced Illinois federal drug crimes defense lawyer may be able to help you build a case to challenge the allegations. Contact Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney at [[phone] to schedule your free consultation today.