New Jersey Resident Sentenced to 12 Years for Using Bitcoin in Fentanyl Supply Scheme

A man from Passaic County has received a 12-year federal prison sentence for his involvement in a significant fentanyl distribution and money laundering operation that utilized Bitcoin to finance overseas drug suppliers, as reported by the U.S. Department of Justice. William Panzera, 53, of North Haledon, New Jersey, was sentenced after being found guilty of conspiracy related to drug trafficking and international promotional money laundering. Court documents reveal that Panzera was part of a drug trafficking organization responsible for importing and distributing hundreds of kilograms of fentanyl analogs and other controlled substances. Prosecutors indicated that he and his co-conspirators planned to import and distribute substances including fentanyl analogs, MDMA, methylone, and ketamine, sourced from suppliers in China. These drugs were then distributed throughout New Jersey in bulk and disguised as counterfeit pharmaceutical pills containing fentanyl analogs instead of authentic medications. Authorities reported that the operation led to the importation of over a metric ton of fentanyl-related substances into the U.S. To cover these shipments, organization members transmitted hundreds of thousands of dollars to suppliers in China using a mix of wire transfers and Bitcoin (BTC). Panzera was convicted in January 2025, with eight other defendants linked to the case having already pleaded guilty. This case is part of an extensive initiative to combat fentanyl trafficking and illegal drug networks by U.S. and international authorities. In May 2025, the Department of Justice revealed the outcomes of Operation RapTor, a large-scale law enforcement effort targeting dark web drug markets, which resulted in the arrest of 270 individuals globally and the confiscation of over $200 million in cash and digital assets. This operation was coordinated across ten countries, including the U.S., U.K., Germany, South Korea, and Brazil, marking it as the largest effort in the history of the agency’s Joint Criminal Opioid and Darknet Enforcement (JCODE) team, seizing more than two metric tons of drugs, including 144 kilograms of fentanyl-laced substances, along with over 180 firearms. The investigation utilized intelligence from previous dark web markets such as Nemesis and Tor2Door and saw the first application of sanctions by the Office of Foreign Assets Control as part of a JCODE action.