Man Sentenced to Six Years for Unlicensed Bitcoin Money Transmitting
A Massachusetts man has been sentenced to six years in prison for running an unlicensed Bitcoin (BTC) money transmitting business. Trung Nguyen, from Danvers, was also ordered to forfeit $1.5 million. According to the U.S. Attorney’s Office in Boston, Nguyen operated a “no questions asked” cash-to-Bitcoin conversion service, which caught the attention of law enforcement. As reported by Cointelegraph, Nguyen’s operation ran from September 2017 to October 2020.
Details of the Operation
Prosecutors detailed how Nguyen attempted to evade authorities by disguising his business as a vending machine company. He learned techniques from an online course on how to conceal his activities from banks, crypto exchanges, and state regulators. Nguyen was taught to avoid using the term “Bitcoin” and to create a list of fictional suppliers.
Customers and Transactions
Nguyen’s clientele included scam victims who were tricked into converting cash into Bitcoin by overseas con artists. He also served a drug dealer who sent $250,000 in cash over ten transactions in 2018. The Justice Department stated that Nguyen converted over $1 million to Bitcoin and deliberately failed to register with the Treasury’s Financial Crimes Enforcement Network (FinCEN), violating federal Anti-Money Laundering regulations.
Prosecutors added that Nguyen did not file Suspicious Activity Reports or Currency Transaction Reports for any of these transactions, including cash transactions exceeding $10,000.
Undercover Sting
Nguyen’s downfall came through in-person meetings with clients to accept large sums of cash. Undercover law enforcement officers met with Nguyen, providing cash in exchange for Bitcoin, with Nguyen taking a 5% commission. He also used encrypted messaging apps to try to hide his Bitcoin transactions.
Nguyen broke up the cash deposits into smaller amounts across different bank branches to avoid detection. Despite pleading not guilty to charges of operating an unlicensed money transmitting business and money laundering in June 2023, he was convicted in November on the unlicensed money-transmitting business charge and one count of money laundering.
Conclusion
The case of Trung Nguyen highlights the ongoing efforts to regulate the crypto space and crack down on illicit activities. The six-year sentence and $1.5 million forfeiture serve as a warning to those who attempt to use cryptocurrencies for illegal purposes. This falls under the category of Uncategorized news, as it touches on both legal and financial aspects of the crypto world.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
