Queens Man Sentenced for Bitcoin Laundering in Drug Scheme

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By Staff Writer | iSkyCreations - News & Media (ISC News & Media)
Published March 16th, 2024

Brooklyn, NY – A Queens resident, Mustafa Goklu, known by the alias “Mustangy,” has been sentenced to 16 months in federal prison for his role in laundering Bitcoin believed to be proceeds from drug trafficking and for operating an unlicensed money transmitting business. The sentencing took place in the United States District Court in Brooklyn, presided over by Judge Pamela K. Chen.

Goklu’s conviction comes after a jury trial in October 2022, culminating a legal battle that highlighted his involvement in a sophisticated scheme using cryptocurrency to facilitate illegal drug trade earnings. United States Attorney for the Eastern District of New York, Breon Peace, and DEA Special Agent-in-Charge, Frank A. Tarentino, III, jointly announced the sentence.

United States Attorney Peace emphasized the crucial role launderers play in the drug trade, stating, “Drug trafficking would be less pervasive and lucrative if money launderers like the defendant did not enable washing the illegal proceeds of the deadly trade.” He detailed how Goklu utilized “localbitcoins.com” to offer his cryptocurrency exchange services, effectively aiding drug traffickers to cleanse their illicit earnings.

Special Agent Tarentino addressed the evolving landscape of money laundering, underscoring the constant aim of launderers to obscure the origins of criminal proceeds. He praised the collaborative effort between the DEA’s NY Cyber Investigative Unit and the U.S. Attorney’s Office for their thorough work throughout the investigation.

The investigation into Goklu began in July 2018 when DEA agents discovered his advertisement on “localbitcoins.com,” where he offered to exchange large sums of Bitcoin for cash. Over a series of undercover operations, Goklu engaged in seven transactions with a DEA agent posing as a drug trafficker, exchanging a total of $133,000 in cryptocurrency into U.S. currency. During these exchanges, Goklu operated out of his parked Mercedes-Benz and various public locations in Queens and Manhattan, taking a commission of seven to eight percent for each transaction.

The evidence presented at trial revealed Goklu’s broader involvement in illicit Bitcoin exchanges, marking a significant step in the fight against digital currency laundering associated with narcotics trafficking.

The case was managed by the International Narcotics and Money Laundering Section of the Eastern District of New York, with Assistant United States Attorneys Gillian Kassner and Francisco J. Navarro leading the prosecution, supported by Paralegal Specialist Bridget Donovan.

Goklu, 50, from Sunnyside, Queens, faces the consequences of his actions as the authorities continue their relentless pursuit of those enabling the drug trade through financial crimes.

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