In 2017, U.S. investigators for the first time officially conducted a controlled buy of drugs for bitcoins and through the darknet, which is how they managed to catch red-handed Alaa Mohammed Allawi, owner of one of the largest drug shops on the soon to be closed AlphaBay site. Allawi is now serving a thirty-year sentence for drug trafficking, cash laundering and other crimes.
Journalists corresponded with Allawi for nearly two years and eventually were able to reconstruct his complicated story. It turned out he came to the United States after first working as a translator for a U.S. military base in Iraq. Once in America, he began distributing marijuana to students so he could pay for his education. Allawi then learned about darknet and was able to take advantage of it like no one else before him.
Here's how he was able to start producing and distributing drugs on an industrial scale and why he was eventually brought to justice.
Journalists corresponded with Allawi for nearly two years and eventually were able to reconstruct his complicated story. It turned out he came to the United States after first working as a translator for a U.S. military base in Iraq. Once in America, he began distributing marijuana to students so he could pay for his education. Allawi then learned about darknet and was able to take advantage of it like no one else before him.
Here's how he was able to start producing and distributing drugs on an industrial scale and why he was eventually brought to justice.
In early 2017, Alaa Mohammed Allawi was one of the top ten sellers on AlphaBay, at the time the largest darknet marketplace with all sorts of illegal goods. Allawi's store sold cocaine, counterfeit Xanax and OxyContin.
Allawi added small amounts of fentanyl to his pills - this gave them a strong effect and made them so addictive; many people died of overdoses while using them. It was his contribution to the opioid epidemic in the U.S., which has claimed more than 230,000 lives since 2017. Federal agents from the U.S. Drug Enforcement Administration intercepted his fentanyl preparations from Kansas to California.
Today, Allawi is serving a thirty-year sentence in a federal prison in upstate New York. His case was the first time a criminal had been tried for dealing fentanyl using the darknet and cryptocurrency. Journalists corresponded with him for two years - and he told them his story. It started at a U.S. military base in Iraq.
Allawi added small amounts of fentanyl to his pills - this gave them a strong effect and made them so addictive; many people died of overdoses while using them. It was his contribution to the opioid epidemic in the U.S., which has claimed more than 230,000 lives since 2017. Federal agents from the U.S. Drug Enforcement Administration intercepted his fentanyl preparations from Kansas to California.
Today, Allawi is serving a thirty-year sentence in a federal prison in upstate New York. His case was the first time a criminal had been tried for dealing fentanyl using the darknet and cryptocurrency. Journalists corresponded with him for two years - and he told them his story. It started at a U.S. military base in Iraq.
When the U.S. invaded Iraq, Allawi was thirteen years old, living in the suburbs of Baghdad. At eighteen, he became an interpreter for the U.S. Army. He was sent to Rashid Air Base near Baghdad, where he moved from one unit to another. By Iraqi standards, the job paid well ($1,350 a month) but was dangerous. Al-Qaeda did not like Iraqis who cooperated with the United States.
Allawi said the insurgents tied his interpreter friend to a car and drove him around until his limbs were severed. They hung the other from a pole, and left his body hanging for days as a warning. Allawi started wearing gloves and a mask so he wouldn't be recognized.
Allawi got along quite well with Americans. He watched a lot of Hollywood movies, so he understood their culture and said nothing when they crossed their legs or exposed their legs, which in the Arab world is considered an insult.
Allawi said the insurgents tied his interpreter friend to a car and drove him around until his limbs were severed. They hung the other from a pole, and left his body hanging for days as a warning. Allawi started wearing gloves and a mask so he wouldn't be recognized.
Allawi got along quite well with Americans. He watched a lot of Hollywood movies, so he understood their culture and said nothing when they crossed their legs or exposed their legs, which in the Arab world is considered an insult.
The use of steroids was very common on U.S. military bases at the time. Allawi began selling them to American soldiers and was discharged from the unit where he served. A few months later he got another transfer job, this time with AGS-AECOM, a private contractor that was rebuilding bases near Baghdad.
Allawi was now sitting at his computer all day translating manuals for Humvees the United States was selling to Iraq. Allawi had always loved computers. When he was fourteen he bought parts one by one - a hard drive here, a RAM module there - until he had a working machine. He spent half his working hours learning programming and hacking techniques.
There he met Eric Goss, a mischievous 25-year-old Texan who shared his love of hip-hop and became his friend. Goss recalls that one day the camp warden announced that Allawi had been denied access to the Internet on his computer. According to him, Allawi had hacked into their boss's e-mail, found messages for his mistress, and forwarded them to his wife (Allawi denied it). The camp joked that Allawi should not be allowed to use the computer at all.
Allawi used his skills outside the base as well. He created Iraqiaa.com, an online dating platform for young Iraqis. At the site's peak popularity, it was bringing in $5,000 a month for its creator. People began asking Allawi to design sites for them. He bought a server and started his own hosting company.
Many of Allawi's fellow translators left Iraq for the United States under a special visa program. Allawi did. He arrived in the U.S. Sept. 12, 2012.
Allawi was now sitting at his computer all day translating manuals for Humvees the United States was selling to Iraq. Allawi had always loved computers. When he was fourteen he bought parts one by one - a hard drive here, a RAM module there - until he had a working machine. He spent half his working hours learning programming and hacking techniques.
There he met Eric Goss, a mischievous 25-year-old Texan who shared his love of hip-hop and became his friend. Goss recalls that one day the camp warden announced that Allawi had been denied access to the Internet on his computer. According to him, Allawi had hacked into their boss's e-mail, found messages for his mistress, and forwarded them to his wife (Allawi denied it). The camp joked that Allawi should not be allowed to use the computer at all.
Allawi used his skills outside the base as well. He created Iraqiaa.com, an online dating platform for young Iraqis. At the site's peak popularity, it was bringing in $5,000 a month for its creator. People began asking Allawi to design sites for them. He bought a server and started his own hosting company.
Many of Allawi's fellow translators left Iraq for the United States under a special visa program. Allawi did. He arrived in the U.S. Sept. 12, 2012.
In Texas, Allawi began a new life. Catholic Charities provided him with a driver's license, food stamps, a $200 monthly stipend and free housing.
He earned a high school diploma by taking exams online and then enrolled in a medical training program. He only managed to finish four semesters because the food stamps and free housing were only available for six months. At the end of that period, Allawi took a job as a machine operator in a door factory. His salary barely covered his commute and his college expenses.
Allawi moved in with another former interpreter named Mohamed Al Salihi, who had recently come to Texas and worked as a bouncer. They always had pot at home. Meanwhile, Allawi spent a fair amount of time with American college students, trying to get a feel for business opportunities. At one point he started selling weed to students at the University of Texas at San Antonio, just to survive.
Initially the plan was simple: pay for tuition by selling marijuana at parties. But after getting to know other dealers, Allawi started selling heavier substances.
He earned a high school diploma by taking exams online and then enrolled in a medical training program. He only managed to finish four semesters because the food stamps and free housing were only available for six months. At the end of that period, Allawi took a job as a machine operator in a door factory. His salary barely covered his commute and his college expenses.
Allawi moved in with another former interpreter named Mohamed Al Salihi, who had recently come to Texas and worked as a bouncer. They always had pot at home. Meanwhile, Allawi spent a fair amount of time with American college students, trying to get a feel for business opportunities. At one point he started selling weed to students at the University of Texas at San Antonio, just to survive.
Initially the plan was simple: pay for tuition by selling marijuana at parties. But after getting to know other dealers, Allawi started selling heavier substances.
In 2014 he was evicted from his apartment for rent arrears. He slept in his car for a while and then began selling cocaine on the street. On January 14, 2015, Allawi was arrested. He was charged with manufacturing and distributing drugs, but because he had no criminal record, he was sentenced to community service.
That same year, 2015, Eric Goss got him a job designing a Web site for an Austin company. One of the company's employees confided in Allawi that he was buying drugs on the darknet. So he stopped dealing on the street. He figured out how to make counterfeit drugs and bought a $600 manual pill press on eBay. Then Allawi improved it - the machine now weighed more than 200 pounds and could make 21,600 pills an hour. There, on eBay, he also bought ingredients found in most oral medications, such as dyes. On May 23, 2015, Allawi created a DopeBoy210 account on AlphaBay and abandoned education for good.
That same year, 2015, Eric Goss got him a job designing a Web site for an Austin company. One of the company's employees confided in Allawi that he was buying drugs on the darknet. So he stopped dealing on the street. He figured out how to make counterfeit drugs and bought a $600 manual pill press on eBay. Then Allawi improved it - the machine now weighed more than 200 pounds and could make 21,600 pills an hour. There, on eBay, he also bought ingredients found in most oral medications, such as dyes. On May 23, 2015, Allawi created a DopeBoy210 account on AlphaBay and abandoned education for good.
AlphaBay was used to buy bulk drugs, weapons, stolen credit card data, and more - with what customers believed to be complete anonymity. According to the FBI, more than $1 billion in illegal cryptocurrency transactions were made on the site between 2015 and 2017.
DopeBoy210 offered no less than 80 different items. X50, a pack of 50 fake xanax tablets, was one of Allawi's flagship products and received rave reviews.
At first Allawi mixed chemicals with methamphetamine and used his press to stamp pills labeled Adderall and Xanax. Then he moved on to counterfeit OxyContin pills with the addition of fentanyl (which he ordered on the darknet from China).
Allawi refused to explain why he switched to fentanyl, but investigators explained to me that drug dealers prefer it because it is more economical to use.
DopeBoy210 offered no less than 80 different items. X50, a pack of 50 fake xanax tablets, was one of Allawi's flagship products and received rave reviews.
At first Allawi mixed chemicals with methamphetamine and used his press to stamp pills labeled Adderall and Xanax. Then he moved on to counterfeit OxyContin pills with the addition of fentanyl (which he ordered on the darknet from China).
Allawi refused to explain why he switched to fentanyl, but investigators explained to me that drug dealers prefer it because it is more economical to use.
Later Allawi expanded his operations and hired employees. Adderall pills flowed into student dormitories and were consumed en masse at parties. Overdoses began. After laboratory tests revealed that the pills contained methamphetamine. The country was drowning in opioids. Overdose deaths skyrocketed from 1,663 in 2011 to 18,335 in 2016, exceeding prescription painkillers and heroin deaths.
Officers from the San Antonio Drug Enforcement Administration's office who decided to investigate the darknet trade were amazed at the scope of DopeBoy210's activities. In principle, tracing Allawi's transactions was easy, but in order to arrest this man for drug trafficking, they needed to ironically link him to the corresponding AlphaBay account, which meant that the cops needed to buy drugs from him with bitcoins.
Officers from the San Antonio Drug Enforcement Administration's office who decided to investigate the darknet trade were amazed at the scope of DopeBoy210's activities. In principle, tracing Allawi's transactions was easy, but in order to arrest this man for drug trafficking, they needed to ironically link him to the corresponding AlphaBay account, which meant that the cops needed to buy drugs from him with bitcoins.
Hunter Westbrook, who was investigating the case, knew it would be difficult for a government agency to set up such an operation. Westbrook usually sat alone, but on March 17 the entire task force was looking over his shoulder - a cop sitting on AlphaBay. The team got the green light: they could buy bitcoins and spend them on drugs from Allawi. Going to the DopeBoy210 page, Westbrook bought five hundred Adderall pills for $1,400 and an ounce of cocaine for $1,200.
About a week later he went to pick up a package. It only contained 447 pills and no cocaine, so Westbrook initiated a dispute with AlphaBay, which ended in favor of Allawi.
But these are details. What mattered was that the DEA had entered a world that its agents had hardly known existed a year before.
Allawi's profits were skyrocketing, but all the funds were still coming in bitcoins that still needed to be cashed in. He met Kunal Kalr at the crypto exchange LocalBitcoins. Together they cashed in more than half a million dollars.
About a week later he went to pick up a package. It only contained 447 pills and no cocaine, so Westbrook initiated a dispute with AlphaBay, which ended in favor of Allawi.
But these are details. What mattered was that the DEA had entered a world that its agents had hardly known existed a year before.
Allawi's profits were skyrocketing, but all the funds were still coming in bitcoins that still needed to be cashed in. He met Kunal Kalr at the crypto exchange LocalBitcoins. Together they cashed in more than half a million dollars.
Allawi started buying real estate and expensive cars. While repairing one of the cars, mechanics discovered a curious black box in it. It was a surveillance device. Allawi immediately destroyed it, but that didn't stop him from continuing his business - he needed the money.
Some of Allawi's pills contained a lethal dose of fentanyl. Thus, the Criminal Investigation Service investigated the death of a twenty-year-old man. They were able to find out exactly where he bought the drugs.
On May 17, Allawi was searched. Among the drug-making equipment were two pill presses, cardboard boxes from China with ingredients and enough drugs to put Allawi away for a long time: 500 g of fentanyl, 500 g of methamphetamine, 500 g of cocaine, 10 kg of counterfeit oxycodone pills laced with fentanyl, 4 kg of counterfeit Adderall laced with methamphetamine and 5 kg of counterfeit Xanax pills. Agents found a Ruger revolver and a Sig Sauer pistol hidden in the living room couch.
Some of Allawi's pills contained a lethal dose of fentanyl. Thus, the Criminal Investigation Service investigated the death of a twenty-year-old man. They were able to find out exactly where he bought the drugs.
On May 17, Allawi was searched. Among the drug-making equipment were two pill presses, cardboard boxes from China with ingredients and enough drugs to put Allawi away for a long time: 500 g of fentanyl, 500 g of methamphetamine, 500 g of cocaine, 10 kg of counterfeit oxycodone pills laced with fentanyl, 4 kg of counterfeit Adderall laced with methamphetamine and 5 kg of counterfeit Xanax pills. Agents found a Ruger revolver and a Sig Sauer pistol hidden in the living room couch.
Then Allawi began to plan his escape.
He was going to hide out in Dallas or California so that when things settled down, he could return to Iraq, where he had been sending money for his family all these years - enough for relatives to open their own mall. Allawi was going to make his way home through Mexico.
For weeks after the raid, no police officers were seen. Eventually Allawi felt confident enough to return to Texas. In late June the Drug Enforcement Administration began arresting Allawi's team in Dallas, San Antonio, and Houston. Uno, Robinson, Al Salihi, and Goss were arrested.
Allawi was discovered in a giant rented house in a Houston suburb. He was dressed in black slacks and a white polo shirt. Investigators seized a cryptocurrency wallet, twelve phones, four small bags of drugs, and a revolver. After the DEA agents made it clear that they had more than enough evidence, Allawi lay on his left side, curled up in a ball on the sidewalk, and closed his eyes.
He was going to hide out in Dallas or California so that when things settled down, he could return to Iraq, where he had been sending money for his family all these years - enough for relatives to open their own mall. Allawi was going to make his way home through Mexico.
For weeks after the raid, no police officers were seen. Eventually Allawi felt confident enough to return to Texas. In late June the Drug Enforcement Administration began arresting Allawi's team in Dallas, San Antonio, and Houston. Uno, Robinson, Al Salihi, and Goss were arrested.
Allawi was discovered in a giant rented house in a Houston suburb. He was dressed in black slacks and a white polo shirt. Investigators seized a cryptocurrency wallet, twelve phones, four small bags of drugs, and a revolver. After the DEA agents made it clear that they had more than enough evidence, Allawi lay on his left side, curled up in a ball on the sidewalk, and closed his eyes.
In June 2017, the court charged Allawi with distribution of fentanyl, methamphetamine and cocaine; possession of a firearm in the commission of a drug trafficking offense; money laundering; and several other offenses as a group.
Allawi pleaded guilty to possession of 400 grams or more of fentanyl, resulting in death or serious bodily injury, and use of a weapon. Investigators estimate Allawi made at least $14 million from his criminal activities by selling at least 850,000 counterfeit pills in 38 states. Allawi claimed he had never heard of overdoses. He was one of the first to run an online drug trade on such a large scale.
Allawi pleaded guilty to possession of 400 grams or more of fentanyl, resulting in death or serious bodily injury, and use of a weapon. Investigators estimate Allawi made at least $14 million from his criminal activities by selling at least 850,000 counterfeit pills in 38 states. Allawi claimed he had never heard of overdoses. He was one of the first to run an online drug trade on such a large scale.
At sentencing, Allawi admitted it was all a big mistake and asked for mercy, but the court showed no mercy. The dealer was sentenced to thirty years in a federal prison in northern Louisiana; he was then transferred to a maximum-security facility in New York. After serving his sentence, he will be deported to Iraq.
About a month after Allawi's arrest, authorities shut down AlphaBay. But that did not end the opioid epidemic in the United States. In 2021, more than 106,000 people died of overdoses, a record high.