According to PANews, the FBI has charged a New York resident, Tushal Rathod, with orchestrating a $1.7 million fraud scheme involving forged checks and business email compromise (BEC) scams — then laundering the stolen funds into Bitcoin$BTC
📅 Timeline: The alleged criminal operations spanned from November 2021 to June 2024, during which Rathod reportedly operated through seven bank accounts across six financial institutions.
💸 The Flow of Funds:
Out of the total illicit gains, $BTC 1.2 million was allegedly converted into Bitcoin and transferred to external wallets. Despite three separate banks flagging suspicious activity and warning him, Rathod is accused of masking the transfers using fake invoices.
👨👩👧👦 Family Ties in the Fraud:
Court documents claim Rathod roped in his girlfriend and family members, funneling over $1 million in illegal funds into their accounts. While Citibank successfully clawed back $800,000, Rathod still managed to purchase $900,000 worth of Bitcoin in February 2023 and moved the funds.
🚔 Refused to Cooperate:
Even after police intervention, Rathod reportedly refused to assist in the investigation. If convicted, he faces up to 20 years in federal prison.
🔍 FBI Agent Samuel Morgan confirmed these findings and the ongoing criminal investigation. This case once again raises red flags on how traditional fraud methods are evolving with crypto laundering.