Man Sentenced for Using Fake Business to Run Underground Bitcoin Exchange

A Massachusetts man has been handed a six-year prison sentence after federal authorities exposed his unlicensed crypto operation, which laundered over $1 million under the guise of a vending machine business.

Trung Nguyen, who operated out of Danvers, ran a cash-to-Bitcoin conversion service from 2017 to 2020 without registering with U.S. financial regulators. To mask the operation, he created a front called National Vending, fabricating business records and avoiding any mention of cryptocurrency in formal communications.

According to prosecutors, Nguyen’s clients included scam victims and a drug dealer who laundered $250,000 through him. He failed to report large cash transactions or file the required compliance documents with the Financial Crimes Enforcement Network (FinCEN).

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His arrest followed multiple meetings with undercover agents where he accepted large sums of cash in exchange for Bitcoin, charging a 5% fee. Investigators also found that Nguyen used encrypted messaging and staggered cash deposits to avoid detection.

A federal jury convicted him in late 2023 on one count of money laundering and for operating without a money-transmitting license. In addition to his prison term, he must forfeit $1.5 million and serve three years of supervised release.

Alexander Stefanov

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