A German citizen living in Colombia was extradited to the United States on April 29, facing charges for allegedly creating and running ‘The Versus Project,’ a major online dark web marketplace, U.S. Attorney Robert Frazer announced on Mar. 6.
The case highlights law enforcement’s ongoing efforts to combat illegal activity conducted through anonymous online platforms. The indictment alleges that Patrick Schmitz, age 37, operated Versus from November 2019 through May 2022, facilitating millions of dollars in transactions involving illegal drugs, counterfeit documents, hacking tools and other illicit goods.
According to court documents and statements made in court, Schmitz managed daily operations for Versus by handling user support tickets, reviewing vendor applications and resolving disputes between buyers and sellers. He is also accused of recruiting staff members and vendors while developing strategies to monetize the platform. “The indictment leading to this extradition makes clear that law enforcement will shine a bright light on criminal conduct on the dark web. We will investigate and prosecute those who seek to use the anonymity of the dark web to profit from the sale of illegal goods. No matter how many monikers a user hides behind or where in the world they are, we will use all legal means to find them and bring them to justice,” Frazer said.
Assistant Attorney General A. Tysen Duva said: “This extradition demonstrates the strength of the Justice Department’s international partnerships, and our ability to identify dark web criminals running platforms engaging in such widespread and varied illegal conduct… Illegal online criminal marketplaces, no matter where they are located, will be targeted and brought down.” Homeland Security Investigations Newark Special Agent in Charge Michael S. McCarthy added: “HSI Newark’s unwavering efforts led to the identification, arrest, and extradition of a key international cybercriminal… This action underscores the dedication of HSI and our partners to combating cyber-enabled crime…”
Versus functioned like an e-commerce site but required users only transact with digital currencies such as Bitcoin or Monero rather than traditional money transfers—thus bypassing standard financial oversight mechanisms meant for anti-money laundering purposes.
Schmitz faces eight federal counts including engaging in a continuing criminal enterprise (with penalties up to life imprisonment), narcotics conspiracy (up to life), conspiracy related charges involving controlled substances distribution via internet channels (upwards of twenty years each), access device fraud (ten years), unlawful transfer of identification documents (fifteen years) as well as money laundering conspiracy (twenty years). The investigation involved Homeland Security Investigations Newark along with assistance from IRS Criminal Investigation Newark Field Office; FBI Kansas City Field Office; Justice Department officials based both domestically and abroad; Colombian police; U.S Marshals Service; among others.
The U.S. Attorney’s Office for the District of New Jersey is part of the U.S. Department of Justice according to its official website. It staffs about 170 attorneys and support personnel across offices located in Newark, Trenton, and Camden according to its official website. The office handles federal prosecutions as well as civil cases throughout New Jersey according to its official website.
This case is part of Operation Take Back America—a nationwide initiative by DOJ aiming at disrupting transnational criminal organizations—and forms part also JCODE efforts targeting opioid trafficking via darknet markets.
