According to CryptoPotato, United States prosecutors have arrested three individuals, Zhong Shi Gao, Naifeng Xu, and Feo Jiang, for allegedly stealing $10 million from financial institutions and laundering the stolen funds using cryptocurrency exchanges. If found guilty, each person could face over 80 years in prison.
The U.S. Attorney’s Office for the Southern District of New York announced the arrests, stating that the suspects were involved in an elaborate fraud scheme targeting banks and financial institutions in the United States. Gao, Xu, and Jiang reportedly hired Chinese and Taiwanese foreign nationals temporarily living in the U.S. to open bank accounts in the New York City metropolitan area and other locations. The three men then took control of these accounts, depositing and transferring funds between them before reporting unauthorized wire transfers, prompting the banks to credit their accounts.
After receiving the credited money, the suspects either withdrew the funds or converted them to cryptocurrency and transferred them to overseas exchanges before the banks became aware of the fake unauthorized reports. The fraudulent activity took place between 2018 and 2022, with the scammers accumulating over $10 million from their illicit actions. The theft affected nearly a dozen banks and financial institutions.
Gao, Xu, and Jiang each face one count of bank fraud conspiracy, one count of conspiracy to commit wire fraud affecting a financial institution, one count of conspiracy to commit money laundering, and one count of aggravated identity theft. The first two counts carry a maximum prison sentence of 30 years each, while the third and fourth counts could result in a maximum jail term of 20 years and two years, respectively. U.S. Attorney Damian Williams commented on the case, stating that the charges should serve as a warning to fraudsters and cybercriminals who think they can use cryptocurrency to hide their identities, adding that they will be found and held accountable for their crimes.