Share this article
Arizona Bitcoin Trader Convicted for Crypto Money Laundering
An Arizonan bitcoin trader has been convicted for using the cryptocurrency to launder the proceeds of drug deals.
By Wolfie Zhao
Updated Sep 13, 2021, 7:45 a.m. Published Mar 30, 2018, 1:00 p.m.
An Arizona bitcoin trader been convicted for using the cryptocurrency to launder the proceeds of drug deals.
Thomas Mario Costanzo, who goes by Morpheus Titania on Twitter and operated a peer-to-peer bitcoin exchange website, was found guilty of charges of five money laundering by a federal jury in Phoenix on March 28, according to a Justice Department announcement.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The case stems from a previously reported raid in April 2017 by the U.S. Department of Homeland Security, in which Costanzo was initially arrested for unlawful possession of ammunition that derived from a prior conviction. The DHS further seized Costanzo's cryptocurrency assets including bitcoin, ethereum and dash, and software pertaining to the tech.
While Costanzo was held in custody following the raid, searches conducted by federal agents at the time raised suspicions that he was using cryptocurrencies to launder proceeds for drug dealers.
The latest conviction came via evidence presented to the federal jury that Costanzo had laundered $164,700 during a two-year period – money taken from undercover federal agents who approached the trader saying they were heroin and cocaine traffickers, according to the announcement.
In addition, evidence was also presented to show that the felon himself used bitcoin to buy drugs, as well as offering an online bitcoin exchange service for others purchasing drugs without implementing know-your-customer authentication procedures.
The Justice Department said each of the five charges can bring a maximum sentence of 20 years in prison, a $250,000 fine, or a combination of the two. Costanzo is expected to face sentence on June 11.
Cryptocurrencies involved in the case may be forfeited by the U.S. government, added the Justice Department.
Court gavel image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
These Three Metrics Show Bitcoin Found Strong Support Near $80,000
Onchain data shows multiple cost basis metrics confirm heavy demand and investor conviction around the $80,000 price level.
What to know:
- Bitcoin rebounded from the $80,000 region after a sharp correction from its October all time high, with price holding above the average entry levels of key metrics.
- The convergence of the True Market Mean, U.S. ETF cost basis, and the 2024 yearly cost basis around the low $80,000 range highlights this zone as a major area of structural support.
Top Stories
