The defendants allegedly secretly converted the Bitcoin into cash and carefully arranged deliveries for customers.
The Federal Bureau of Investigation (FBI) has charged six individuals with operating an unlicensed money transmitting business involving cryptocurrency as a vehicle for money laundering.
Court documents from Oct. 18 show that the defendants worked to convert Bitcoin and other cryptocurrencies into cash from at least July 2021 to September 2023. The conversion process involved shipping cash in exchange for cryptocurrency through the U.S. Postal System and exchanging cash in person for cash pickup.
The six accused are Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel and Raju Patel.
The FBI charged the men 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 calls for arrest warrants for the men, indicating they were not in custody when the case was filed in court.
The case is being heard in the Southern District of New York, where much of the criminal activity took place. New York has strict cryptocurrency rules and regulations that require anyone transmitting money to obtain a license.
Two other people also participated in the conspiracy
Although six individuals were charged, they did not constitute the entire operation. Around January 2023, an anonymous co-conspirator began communicating with law enforcement after being contacted by an undercover officer.
The co-conspirator, who operated on darknet markets and peer-to-peer cryptocurrency exchanges, revealed that he earned $30 million from cryptocurrencies by exchanging funds. He also said that many of the service’s customers were drug dealers and hackers.
Another individual who mailed cash on behalf of the conspirator was later arrested by law enforcement and became a confidential source. That individual eventually began participating in controlled cash collection activities by law enforcement.
The two men were charged in August and February 2023, respectively. The latter could receive a reduced sentence for cooperating with the authorities.
The FBI has a record of seizing cryptocurrencies involved in illegal activity. Notably, since 2022, the agency has seized $3.36 billion from Silk Road fraudster James Zhu and $3.6 billion from Bitfinex hackers Ilya Lichtenstein and Heather Morgan. #FBI #比特币洗钱
