New York Man Busted in $1.7 Million Bitcoin Fraud Scheme

A New York man, Tushal Rathod, is facing serious charges after allegedly orchestrating a $1.7 million fraud scheme involving forged checks and business email compromise, with a significant portion of the ill-gotten gains converted into Bitcoin. Federal authorities claim Rathod's illicit activities spanned from November 2021 to June 2024.

According to FBI agent Samuel Morgan, Rathod allegedly received funds across seven accounts at six different financial institutions. He then reportedly sent $1.2 million worth of Bitcoin to external addresses. Even after receiving warnings from at least three banks about the suspicious nature of his funds, Rathod allegedly attempted to hide the transactions with fake invoices. When confronted by law enforcement, he reportedly refused to cooperate.

Court documents indicate Rathod didn't act alone, allegedly enlisting his girlfriend and family members to assist in the fraud, with over $1 million in fraudulent funds deposited into their accounts. While Citibank managed to recover $800,000, Rathod reportedly purchased and transferred $900,000 worth of Bitcoin in February 2023.

If convicted, Rathod could face a maximum of 20 years in prison. This case highlights the increasing intersection of traditional financial fraud and cryptocurrency, as criminals attempt to leverage digital assets for money laundering.