According to Cointelegraph, a Massachusetts man has been sentenced to six years in prison for operating an unlicensed cash-to-Bitcoin conversion service. Trung Nguyen, from Danvers, was sentenced by Boston federal court Judge Richard Stearns, who also ordered him to forfeit $1.5 million. Following his prison term, Nguyen will undergo three years of supervised release. The Boston U.S. Attorney’s Office announced the sentencing on May 22.
Prosecutors revealed that Nguyen ran a business named National Vending from September 2017 to October 2020, which was not registered as a money-transmitting service. He reportedly used techniques learned from an online course to avoid detection by authorities. These methods included disguising his operations as a vending machine company, accepting cash deposits, listing fictional suppliers, and avoiding the use of the term 'Bitcoin.' This deception allowed him to conduct transactions without drawing attention from banks, crypto exchanges, or state authorities.
Nguyen's clientele included scam victims who were misled into converting cash into Bitcoin by overseas con artists, as well as a drug dealer who transferred $250,000 in cash through ten transactions in 2018. The Justice Department stated that Nguyen converted over $1 million into Bitcoin without registering with the Treasury’s Financial Crimes Enforcement Network (FinCEN), a requirement under federal Anti-Money Laundering regulations. Additionally, he failed to file Suspicious Activity Reports or Currency Transaction Reports for transactions exceeding $10,000.
Nguyen's illegal activities were uncovered through meetings with undercover law enforcement officers, where he accepted cash and provided Bitcoin in exchange, charging a commission of over 5%. The indictment detailed that Nguyen used encrypted messaging apps and other technologies to obscure his Bitcoin transactions. He also structured cash deposits into smaller amounts over consecutive days and at different bank branches to avoid detection.
Charged with operating an unlicensed money-transmitting business and two counts of money laundering, Nguyen pleaded not guilty in June 2023. However, a jury convicted him in November on the charge of operating an unlicensed money-transmitting business and one count of money laundering, while acquitting him of a separate money laundering charge.
