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Convicted dark web drug dealer from Reisterstown indicted for laundering $130 million worth of Bitcoin

A Reisterstown man convicted of dealing drugs over the dark web under the moniker “Xanaxman” three years ago continued laundering money from prison, federal prosecutors allege in a new indictment seeking to seize $130 million worth of Bitcoin from him.

A federal grand injury indictment against Ryan Farace, 37, and his father, Joseph, was unsealed Wednesday. Farace is currently serving a 57-month federal prison sentence for selling Alprazolam — the generic form of Xanax, a sedative to treat anxiety and panic disorders — over the dark web.

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As part of that case, he was ordered in late 2018 to forfeit $5.6 million in cash and property, as well as 4,000 Bitcoin.

The new indictment alleges that Farace and Joseph Farace, his father, laundered drug proceeds between October 2019 and April 2021. It was not immediately clear whether those were among the proceeds he was to forfeit, or whether it was funds the government had not known about previously.

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The indictment says the DEA seized a total of 2,933 Bitcoin in February and April of this year.

The value of Bitcoin has soared since late last year — as of Thursday, 2,933 Bitcoin was worth nearly $130 million. The value of Bitcoin has increased more than seven-fold since Ryan Farace was sentenced in August 2018, according to Yahoo Finance’s historical pricing chart.

Ryan Farace, 37, sought compassionate release last year, citing health concerns and the COVID-19 pandemic. That request was denied.

Neither had attorneys listed or could be reached for comment.

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