Man jailed and £1.3m seized in cryptocurrency

Ryan Coleman had been trading under the pseudonym Snowcap online

Police in Devon have seized £1.3m in cryptocurrency from a man jailed for selling drugs online.

Ryan Coleman, 36, from Torquay, who admitted to supplying cocaine, ecstasy, cannabis and ketamine, was jailed for 15 years on Friday at Exeter Crown Court.

Devon and Cornwall Police said, in total, he sold about 80kg of Class A and B drugs which were worth more than an estimated street value of £1m in 18,500 transactions.

Senior investigating officer Detective Chief Inspector Sam Smoothy said the force was "continually advancing its investigative methods to track, trace, and disrupt criminal networks".

Trading for years

Police said they became aware of Coleman in 2021 during another drugs investigation in south Devon.

Officers had information to suggest he was involved in the movement and laundering of cryptocurrency, and they soon launched Operation Freebie to look into him.

The force said Coleman had been trading under the pseudonym Snowcap on multiple marketplaces on the dark web for six years.

He had also been using cryptocurrency payments to fund his lifestyle, including holidays, sporting activities and a personal trainer, police said.

Det Ch Insp Smoothy said the case "highlights the evolving tactics of organised crime groups using cryptocurrency and the dark web to facilitate illicit drug trade".

The judge was told he had no previous convictions and money in Bitcoin wallets revealed sums of £2,460,418.

Police said detectives would seek to confiscate some of the funds through the Proceeds of Crime Act, meaning the seized cryptocurrency could be reinvested into the force to fund proactive operations and towards good causes.

The force said half of the funds would go to HM Treasury to invest in public services.

Cryptocurrencies are a digital form of money that is completely virtual - there are no physical coins or notes.

They are like an online version of cash, which can be used to buy products and services, but not many shops accept Bitcoin.

They are not controlled by the government or banks and can be traded fairly anonymously.