Man in Bitcoin seizure case arrested for opioid trafficking
A Mississauga resident previously forced by a court to hand over nearly $2 million worth of Bitcoin in a historic case has been arrested again.
A Mississauga resident previously forced by a court to hand over nearly $2 million worth of Bitcoin in a historic case has been arrested again.
This time, Matthew Phan is facing charges for trafficking powerful synthetic opioids, including nitazenes – a drug up to 20 times more potent and deadly than fentanyl.
Nitazenes are a strong synthetic opioid developed by researchers around 60 years ago as an alternative to morphine. However, because of their strength and the high potential for overdose, they were never made available for general consumption.
The CBSA and RCMP announced the arrest of Phan on drug trafficking charges on Friday following an investigation into multiple shipments of illicit substances from China.
According to the announcement, officers intercepted packages at mail processing centres in Mississauga and Vancouver uncovering and seizing over 5 kg of deadly drugs, more than $120,000 in cash, and luxury watches and precious metals from Phan’s Mississauga residence.
Phan, now 36-years-old, first made headlines in 2019 when a Toronto judge ordered he hand over $1.9 million in Bitcoin found on his computer, concluding the funds were linked to his dark web drug trade.
It was believed to be Canada’s largest-ever forfeiture of Bitcoin at the time.
Forfeiture, the process of courts seizing assets believed to be acquired through criminal activity, is reasonably common in Canada – but the seizure of cryptocurrency, specifically, was novel in 2019.
In that case, Superior Court Justice Jane Kelly ordered 281.41 Bitcoins be handed to the Ministry of the Attorney General after hearing expert evidence then 30-year-old Phan used them to buy a gun and illegal narcotics on the dark web.
Phan also pleaded guilty to attempting to import a firearm and possessing cocaine, PCP, and ketamine for trafficking.
He now faces multiple new charges, including trafficking and possession of controlled substances, as well as unlawful exportation of drugs.
Authorities said this latest arrest underscores the continued threat posed by transnational drug operations.
“This opioid seizure is yet another example of the effective partnership between the CBSA and the RCMP in stopping cross-border drug trafficking,” said Minister of Public Safety David J. McGuinty.
“Nitazenes pose a significant threat to public health, and these joint investigations and resulting enforcement actions keep our communities safe, both in Canada and abroad,” continued McGuinty in describing the risks associated with the drug.
Phan has been denied bail and remains in custody.
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Why does the Toronto Stock Exchange and its overseers allow bitcoin-based stocks to operate? How much more reports of bitcoins and drugs and disappearing bitcoins do we have to endure before people in power get smart? Bitcoin's only plus is that it makes some investors rich and pummels mercilessly those stupid enough to invest in it.