Cryptocurrency insiders know that whenever big money is used in any kind of crime, it’s more likely to involve dollars than Bitcoin. Whenever the U.S. Border Patrol discovers a new border tunnel used to smuggle drugs and illegal immigrants, the agents are more likely to find crates of cash than a mobile device with a Coinomi wallet on it. However, that does not stop Bitcoin from getting seen as the currency of drug dealers and money launderers. This gets especially highlighted in stories like a drug ring that involved U.S. Naval Academy cadets using Bitcoin as part of a scheme to sell drugs to fellow cadets.
Dark Web Sales of Drugs Didn’t End With Silk Road Bust
Although Silk Road was brought to the surface through a mistake made by Dread Pirate Roberts, that was not the end of the use of the Dark Web and cryptocurrencies to buy and sell illegal merchandise like drugs.
The cadets had been using the Dark Web to purchase LSD, cocaine, and ketamine to sell to their classmates. A midshipman reported the operation, which sparked an investigation that led to drug tests of more than 4,500 cadets and the discovery of cocaine in the room of a user. The user, who was at athletic practice at the time, attempted to escape but was caught. The investigation is still ongoing in cooperation with NICS.
Naval Academy spokesperson Cmdr. David Mckinney said of the matter, “The Navy has a zero tolerance for drug abuse and takes all allegations of misconduct very seriously.”
Although only three cadets stand accused at this time, officials estimate that the actual number of cadets involved could be as high as two dozen. According to the Midshipmen Regulations Manual, “wrongful use, possession, or willful involvement” in drugs is grounds for mandatory separation from the Academy. In layman’s terms, this means that the cadets could be expelled.
Could Drugs Help Military Personnel and Veterans, Though?
While it might be difficult to say that drugs should be the first choice when treating psychological disorders, some cryptocurrency insiders such as the anonymous person behind the Pineapple Fund seem to believe so. The Pineapple Fund donated $5 million worth of Bitcoin to a fund for the study of MDMA-assisted psychotherapy for people who suffer from post-traumatic stress disorder.
Cadets, though, right? Considering that they didn’t limit themselves to LSD, the Navy is doing the right thing by following its own rules when it comes to drug use. It may be surprising that this isn’t getting splashed on the news tickers of more financial news sites when the mainstream financial industry is so intent on making cryptocurrencies look like the bad guy. However, more level heads will pin the blame where it belongs, on some cadets who were dumb enough to get caught essentially running drugs on Naval Academy turf, and not on an inanimate piece of fintech like Bitcoin.