Trung Nguyen, a man from Danvers, Massachusetts, USA, was sentenced to six years in prison for operating an unlicensed money transfer service, laundering over $1 million into Bitcoin for scammers and drug traffickers. The case, announced by the U.S. Department of Justice, highlights the legal risks in the crypto market. The article summarizes the case details, its impact on the cryptocurrency industry, and lessons for investors in the U.S.

The Trung Nguyen case and money laundering activities

According to the U.S. Department of Justice, Trung Nguyen, 48, operated National Vending, an unlicensed money transfer business from September 2017 to October 2020. Not registered with the Financial Crimes Enforcement Network (#FinCEN ) and lacking anti-money laundering checks, Nguyen transferred over $1 million in cash into Bitcoin, charging fees from transactions. Among them:

  • $250,000 from an individual claiming to be a methamphetamine dealer.

  • $445,000 from victims of romance scams, who were tricked into sending Bitcoin to the scammer abroad.

Nguyen used several methods to conceal his wrongdoing:

  • Use encrypted messaging apps to communicate with clients.

  • Breaking down cash amounts over $10,000 into multiple transactions or depositing through multiple banks.

  • Disguising National Vending as a vending machine business when dealing with banks and crypto exchanges.

  • Participate in courses to learn how to conceal, create fake vendor lists, and avoid mentioning 'Bitcoin'.

After a five-day trial in November 2024, Nguyen was sentenced to six years in prison, three years of supervised release, and $1.5 million was seized. Judge Richard G. Sterns emphasized the seriousness of the conduct. Deputy Attorney General Joshua Levy warned: 'Bitcoin cannot help launder dirty money anonymously.'

Impact on the crypto market

The case raises concerns about legal risks in the crypto industry in the U.S., where anti-money laundering regulations are becoming increasingly stringent. Bitcoin, with its current price of $111,000 (according to Binance, 5/24/2025), remains a target for illegal activities, even though blockchain is more transparent than cash. The incident affects trust in unlicensed crypto services, prompting investors in the U.S. to shift towards reputable exchanges like Binance, which implement strict anti-money laundering checks.

The case also underscores the importance of legal compliance in the crypto industry. Exchanges in the U.S. are ramping up oversight to avoid being implicated in similar cases, creating a safer environment for investors.

Lessons for investors

The Trung Nguyen case provides important lessons:

  • Choose reputable platforms: Only trade on licensed exchanges like Binance, which have anti-money laundering checks.

  • Conduct thorough research: Verify information from CoinMarketCap and Binance to ensure safety when investing.

  • Legal compliance: Understand regulations in the U.S. to avoid risks when trading Bitcoin.

  • Diversify your portfolio: Combine Bitcoin with stablecoins (#USDT , USDC) to mitigate volatility risks.

Suggestions for investors

  • Use platforms like Binance to ensure transparent and secure transactions.

  • Stay updated on crypto regulations in the U.S. to make informed decisions.

  • Learn about blockchain technology to identify reliable services.

Risk warning

Investing in cryptocurrencies, including Bitcoin, carries high risks due to price volatility and legal risks. The information in this article is for reference only and is not investment advice. Please conduct thorough research (DYOR) before making any investment decisions. #anhbacong