Drugs trafficker Craig Costello is set to have assets from his home, bank balance and his Crypto stash confiscated
12:30, 04 Jan 2026Updated 12:31, 04 Jan 2026
Craig Costello(Image: Teesside Live)
Dirty cash is set to be seized from a member of a global drugs ring. Craig Costello managed the North East arm of the illegal narcotics enterprise, between 2015 and 2016, along with business partners John ‘Winky’ Watson, Steven Beazley and Dave Wright.
They were working under Stockton drugs baron Jon Moorby who alongside Merseyside gangster Lance Kennedy directed the movement of drugs from Spain and Belgium into the UK. Kennedy organised an estimated £17m of cocaine imports into the country.
The sophisticated operation saw class A drugs flown across the Channel in chartered helicopters, with couriers ferrying cocaine up to Merseyside, from Kent and then across to the North East. The four pals were all convicted of conspiracy to supply class A drugs in 2021 – after Cleveland Police put them under surveillance to gather evidence.
Costello, 43, fled fled the country for the Middle East before his trial began at Teesside Crown Court, but he was convicted of conspiracy to supply class A drugs in his absence. He was later caught, reportedly whilst driving in Amsterdam, and brought back to the UK to serve his nine-year-seven month sentence in June 2022.
A proceeds of crime application has already seen dad-of-four Costello’s five-bedroom home sold and a number of his vehicles confiscated and liquidised, reports Teesside Live.
Clockwise from top left Steven Beazley, John ‘Winky’ Watson, Craig Costello, David Wright
Financial investigators claim the drug trafficker made £1.6m in illegal profits. Looking to recoup the drugs cash, prosecutors have identified a payment of £16,815 into Costello’s bank account as consistent with drugs trafficking profit, in addition to a further deposit of £3,175.
Investigators have traced £4,012.21 worth of Etherium Classic Crypto currency in Costello’s name, which is deemed to originate from his drug sales, say court documents. Costello’s home on Chesterfield Drive in Marton, Yorkshire, was sold after being identified as proceeds of crime, while he was in prison.
Costello was freed from HMP Kirklevington, near Yarm, in August on an electronic tag, but the proceeds of crime application continues.
The exact amount to be seized from Costello has yet to be settled due to the proceeds of Costello’s house sale not yet being finalised between him and his former partner, Victoria Costello, who started divorce proceedings after he was sent to prison.
Paperwork from the proceeds of crime application reveal that the equity in the house was £107,722.80. The outstanding mortgage owed to the Royal Bank of Scotland and a debt to the the government agency Homes England, were both settled with the cash from the sale.
The separated couple attended Durham Crown Court last month, when prosecutor Steve McNally said that Mrs Costello’s claim stems from cash “she says she paid as part of the deposit” on the home when it was originally bought. The couple’s divorce proceedings were halted, until the finances are settled.
Costello has been found to have £137,577 in cash and assets available to be confiscated. A judge will make a confiscation order next year. Costello’s former drugs pals had their proceeds of crime applications finalised some time ago – John Watson, Steven Beazley and Dave Wright paid back less than £300,000 from a whopping £4m profit.