The Federal Bureau of Investigation (FBI) has charged six individuals in connection with an unlicensed money transmission business using cryptocurrencies as a money laundering tool.
Court filings dated October 18 show that the defendants worked to convert Bitcoin and other cryptocurrencies into cash at least between July 2021 and September 2023. The conversion process involved cash sent through the U.S. Postal System in exchange for cryptocurrency, but also in person. collect cash.
The six accused are Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel and Raju Patel.
The FBI charged these individuals with one count of conspiracy to operate an unlicensed money transmission business and one count of operating an unlicensed money transmission business. The case text requests an arrest warrant for the individuals, indicating that they were not yet in custody at the time the case was filed with the court.
The case is ongoing in the Southern District of New York, where much of the criminal activity took place. New York has strict crypto rules and regulations that require anyone sending money to obtain the relevant license.
Two others were involved in a conspiracy
Although six people have been charged, they do not constitute the entire operation. An anonymous co-conspirator began communicating 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 that he had made $30 million worth of crypto by exchanging money. He also stated that many of the service’s customers were drug dealers and hackers.
Another person who sent cash on behalf of the co-conspirator was later arrested by police and became a confidential source. That individual eventually began participating in controlled cash withdrawals with law enforcement.
These two individuals were charged separately in August 2023 and February 2023. The latter could receive a reduced sentence due to his cooperation with the authorities.
The FBI has a track record of seizing cryptocurrency involved in illegal activities. Notably, since 2022, 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.
The post that the FBI charges six people with laundering millions of dollars worth of Bitcoin money first appeared on CryptoSlate.