header banner
Default

Six people are accused by the FBI of money-laundering Bitcoin worth millions of dollars


FBI charges six individuals in multimillion-dollar Bitcoin money-laundering scheme FBI charges six individuals in multimillion-dollar Bitcoin money-laundering scheme 2 weeks ago · 2 min read

Newconomics Lisbon 2023

The defendants allegedly worked to surreptitiously convert Bitcoin to cash and orchestrate drop-offs for clients.

mike-dalton-author-150x150

2 min read

Updated: October 21, 2023 at 1:20 am

FBI charges six individuals in multimillion-dollar Bitcoin money-laundering scheme

AI GENERATED IMAGE VIA DALL-E 3

Stop scaring users with your bad KYC flows

The Federal Bureau of Investigation (FBI) has charged six individuals in connection to an unlicensed money-transmitting business involving crypto as a money laundering tool.

Court filings dated Oct. 18 indicate that the accused individuals worked to convert Bitcoin and other cryptocurrencies to cash at least between July 2021 and September 2023. The conversion process involved cash shipped via the U.S. postal system in exchange for cryptocurrency as well as in-person cash pickups.

The six accused individuals are Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel, and Raju Patel.

The FBI charged those individuals with one count of conspiracy to operate an unlicensed money-transmitting business and one count of operating an unlicensed money-transmitting business. The case text requests a warrant for the individuals’ arrests, indicating that they had not yet been brought into custody at the time of the court filing.

The case is proceeding in the Southern District of New York, where the criminal activity largely took place. New York has stringent crypto rules as well as regulations that require anyone transmitting money to obtain the relevant license.

Two others were involved in conspiracy

VIDEO: FBI Charges Six in Connection with $30M Crypto Crime Ring
Crypto World Daily

Though six individuals have been charged, they do not make up the entire operation. One anonymous co-conspirator began to communicate with law enforcement after being contacted by an undercover officer around January 2023.

The co-conspirator, who operated on darknet markets and peer-to-peer crypto exchanges, revealed he had earned $30 million in crypto by swapping funds. He also stated that many clients of the service were drug dealers and hackers.

Another individual who mailed cash on behalf of the co-conspirator was later arrested by law enforcement and became a confidential source. That individual eventually began to participate in controlled cash pickups with law enforcement.

Those two individuals were charged separately in August 2023 and February 2023. The latter could receive a reduced sentence due to his cooperation with authorities.

The FBI has a track record of seizing cryptocurrency involved in illegal activities. Notably, the agency has seized $3.36 billion from Silk Road fraudster James Zhong and $3.6 billion from Bitfinex hackers Ilya Lichtenstein and Heather Morgan since 2022.

Latest FBI Stories

Sources


Article information

Author: Andrea Alvarez

Last Updated: 1698783242

Views: 700

Rating: 4.1 / 5 (119 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Andrea Alvarez

Birthday: 2019-03-09

Address: 78983 Smith Cliff Suite 226, Hayesstad, WA 52152

Phone: +4427930331675333

Job: Virtual Reality Developer

Hobby: Kite Flying, Table Tennis, Cross-Stitching, Golf, Puzzle Solving, Sculpting, Gardening

Introduction: My name is Andrea Alvarez, I am a treasured, unwavering, artistic, exquisite, vivid, unreserved, resolved person who loves writing and wants to share my knowledge and understanding with you.