- Michael Chase, a 46 years old resident of Brooklyn and his accomplice Jose Colon, 50 of Orlando, Florida were accosted for allegedly operating a dark web drug trafficking business with a code name”clockwerk.
- Prosecutors of the suspects claim the pair sold cocaine, MDMA and other substances that are under control across the states.
- The authorities further allege the suspects also leveraged on fictitious business accounts, cash app accounts and peer-peer cryptocurrency traders thereby moving enormous dollars in thousands via the financial system.
Federal authorities in New York have filed charges against two men, accusing them of running a large-scale dark web drug trafficking syndicate that makes supplies of controlled substances to customers across the United States.
Alvin L.Bragg Jr., the District Attorney of Manhattan, made an announcement indicating Michael Chase, 46, of Brooklyn, New York & Jose Colon, 50, of Orlando, Florida, are facing accusations of selling narcotics online with the vendor name ”Clockwerk.”
From the court document, the presumption regarding the time frame they were executing the operation was, between January 2023 and March 2026. They used the dark web marketplaces in advertising and distributing MDMA, cocaine & other illegal drugs.
According to the persecutors, the customers can make purchases of significant quantities up to 100 grams of cocaine or up to 1,000 MDMA pills.
Mode of payments according to reports is through a hidden cryptocurrency wallet, thereby making the transaction secret. This channel makes tracing the transactions difficult for investigators.
Authorities are contending that the networks of their operations reached to the extent of moving across all the 50 states & even Washington, DC.
Investigators Detail Alleged Shipping and Communications Network
From the court filing it is clear there was a top-level sophisticated operation that involves both physical and online shipping of drugs going on. Also, claims emanating from the prosecutors points that Micheal Chase is the manager of the “clockwerk” vendor profile.
He uses the account to carry out multiple dark web marketplaces transactions, cryptocurrency payments and handling of customer interactions in a covert manner. Jose Colon purportedly handles logistics and fulfillment, packaging and distribution of narcotics to buyers across the states.
Authorities also claim the duo has engaged in shipping more than 2600 packages during the course of the period in review, involving nefarious drug activities. The two suspects had an extensive covert communication within the period between January 2nd and May 25, 2025, and this came from what the investigators found out.
Chase and Colon allegedly exchanged hundreds of messages via the encryption messaging application Signal.
Furthermore, the prosecutors added that their conversations focus on inventory levels, shipment schedules, profits, packaging methods, customer orders, and other operational details relating to their drug trade.
The use of encrypted communications channels, darkweb marketplaces and covert-focus cryptocurrency had given credence to the operation to strive for several years before their crack down by law enforcement agencies through evidence they garnered to now pursue charges.
According to the officials, this case highlights the increasingly compound methods cyber criminals networks enable in order to hide illicit activities while rending service to customers across the country.
Authorities Allege Money Laundering Through Fictitious Businesses
In addition, the allegations went beyond drug trafficking, as prosecutors also accused the perpetrators of a money laundering scheme against Chase and Colon.
According to documents from the court, the defendants depend on Cash app transactions, peer-to-peer cryptocurrency trading, shell bank accounts with links to fictitious businesses to move funds they generate from the drug trading.
The use of such financial tools highlights the importance of targeting the underlying crypto laundering services, a priority demonstrated by the recent AudiA6 seizure in an 11-country coordinated operation.
Investigators allege that Michael Chase received approximately $156,000 via Cash App accounts before, making transfers into the bank accounts of two companies they identified as Designer Auto Sport NY Inc. & Good Apple Fitness LLC.
Prosecutors are still insisting that these entities serve as instruments that both suspects deployed to hide the source of funds that bears connection to the drug operation.
Meanwhile, Jose colon the alleged partners received payment of approximately $191,000 with the proceeds credited directly into his personal bank accounts. As a result of this investigation, both men are now facing multiple criminal charges that include criminal sale of substances under control, conspiracy and money laundering.
While announcing the case, Manhattan District Attorney Alvin Bragg said the defendants allegedly use dark web and cryptocurrency platforms in the distribution of dangerous drugs, bringing jeopardy to public safety.
Notably, this arrest and investigation was a joint effort between the United States Postal Inspection Service and the Suffolk County District Attorney`s Office.
