Bitcoin Launderer Sentenced
Bitcoin Launderer Sentenced to Six Years
Trung Nguyen, of Danvers, Massachusetts, was sentenced to six years in prison followed by three years of supervised release for operating an unlicensed money-transmitting business. He was also ordered to forfeit $1.5 million.
Nguyen ran "National Vending," a business prosecutors described as a "no questions asked" cash-to-Bitcoin conversion service operating between September 2017 and October 2020. He used techniques learned in an online course to disguise his activities from banks, crypto exchanges, and authorities. These techniques included:
- Masquerading as a vending machine company.
- Using fabricated supplier lists.
- Avoiding the use of the term "Bitcoin" whenever possible.
Nguyen's clientele included victims of overseas scams and a drug dealer who transacted $250,000 in cash over ten transactions in 2018. Prosecutors stated Nguyen converted over $1 million to Bitcoin and failed to register with the Financial Crimes Enforcement Network (FinCEN), violating federal Anti-Money Laundering regulations. He also failed to file required Suspicious Activity Reports or Currency Transaction Reports.
Undercover Operation Leads to Arrest
Nguyen's in-person cash transactions with clients led to his apprehension. An undercover operation revealed that he accepted cash and sent Bitcoin in return, charging a 5% commission.
The indictment detailed Nguyen's use of encrypted messaging apps and techniques to obfuscate his Bitcoin transactions. He also structured cash deposits to avoid detection. While initially pleading not guilty, a jury convicted him of operating an unlicensed money transmitting business and one count of money laundering.
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