D.A. Bragg Announces Takedown Of Dark Web Drug Trafficking Operation

"Clockwerk" Accepted Cryptocurrency in Exchange for Bulk Quantities of Cocaine, MDMA, More

Manhattan District Attorney Alvin L. Bragg Jr. today announced the indictment of MICHAEL CHASE, 46, and JOSE COLON, 50, for allegedly selling drugs on the dark web in exchange for cryptocurrency between January 2023 and March 2026. CHASE and COLON are charged in a New York State Supreme Court indictment with Conspiracy in the Fourth Degree, Criminal Sale of a Controlled Substance in the Third Degree, and Money Laundering in the Second Degree, among other charges. [1]

"Michael Chase and Jose Colon allegedly used the dark web to sell dangerous drugs in exchange for cryptocurrency, before moving the funds into fictitious business accounts. They allegedly shipped drugs to all fifty states, jeopardizing the health and safety of individuals across the country," said District Attorney Bragg. "I want to thank our partners at USPIS and the Suffolk County D.A.'s Office for their partnership in this investigation."

"The Manhattan District Attorney's Office did outstanding work in dismantling this sophisticated dark web drug trafficking operation that distributed dangerous narcotics across the country," said District Attorney Tierney. "These multi-jurisdictional operations are essential to combating highly organized criminal enterprises that use advanced technology to evade detection and flood our neighborhoods with poison. My office remains committed to partnering with our law enforcement partners to disrupt drug trafficking in all its forms and hold those responsible fully accountable."

As alleged in court documents and statements made on the record, between January 2023 and March 2026, CHASE and COLON sold cocaine and other controlled substances on the dark web under the alias "Clockwerk." They shipped over 2,600 packages to customers in all 50 states and Washington D.C.

Clockwerk operated on dark web marketplaces including DrugHub, Abacus, and Black Ops, and advertised itself as a "domestic retailer/semi bulk" operation. Buyers could order over 100 grams of cocaine or 1,000 pills of MDMA. CHASE managed Clockwerk's dark web vendor page, which accepted payment in the anonymity enhanced cryptocurrency Monero, and shipped packages from the New York metropolitan area. COLON reported to CHASE, shipping packages from Orlando, Florida, and reporting back his shipments, his sales, and the balance he held in Monero.

Monero is an "anonymity enhanced" cryptocurrency, designed to prevent transactions from being tracked or monitored.

As further alleged, CHASE and COLON laundered their drug proceeds using peer-to-peer cryptocurrency traders, Cash App accounts, and shell bank accounts in the name of fictitious businesses. CHASE also attempted to pay his regular expenses using the cryptocurrency he was generating from drug sales and, as an aspiring actor, offered to pay an acting coach in Monero.

Between January 2, 2023, and May 25, 2025, CHASE and COLON sent hundreds of messages to each other using the encrypted messaging application Signal, discussing shipments, inventory, profits, customers, and package.

CHASE received approximately $156,000 into his Cash App accounts between January 2023 and August 2024. COLON received $191,000 between January 2023 and December 2025. Many of the accounts sending to CHASE and COLON were operating as cryptocurrency traders, exchanging cryptocurrency, including Monero, for U.S. dollars. After receiving the U.S. dollars into his Cash App account, CHASE then moved the criminal proceeds through two fictitious business accounts: Designer Auto Sport NY Inc. and Good Apple Fitness LLC. COLON, in contrast, sent the funds directly to his personal bank accounts, which he then took out as large cash withdrawals shortly after deposit.

Assistant D.A. Adam Maltz (Deputy Chief of the Cyber Crime Bureau) is handling the prosecution of this case under the supervision of Assistant D.A. Jeremy Glickman (Chief of the Cyber Crime Bureau) and Executive Assistant D.A. Jodie Kane (Chief of the Investigation Division).

Senior Investigator Jacob Diamond, Investigative Analysts Jay Hickey and Natalie Villa, former Investigative Analyst Sara Scanlan, and Principal Financial Investigator Wei Man Tang assisted with the investigation.

D.A. Bragg thanked Det. Anthony Napoli of the Suffolk County District Attorney's Office and Inspector Jose Mena of USPIS for their partnership in the investigation.

Defendant Information:

MICHAEL CHASE

Brooklyn, New York

Charged:

• Criminal Sale of a Controlled Substance in the Second Degree, a class A-II felony, two counts
• Criminal Sale of a Controlled Substance in the Third Degree, a class B felony, fourteen counts

• Money Laundering in the Second Degree, a class C felony, one count
• Conspiracy in the Fourth Degree, a Class E felony, one count

JOSE COLON

Orlando, Florida

Charged:

• Criminal Sale of a Controlled Substance in the Third Degree, a class B felony, three counts
• Money Laundering in the Second Degree, a class C felony, one count
• Conspiracy in the Fourth Degree, a Class E felony, one count

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[1] The charges contained in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.