FBI has charged 6 Individuals for Operating a $30 Million Cryptocurrency-Based Money Transmission Business.
According to court documents filed on Wednesday in the Southern District of New York, the FBI has charged six individuals with running an illicit money-transmitting operation valued at $30 Million using cryptocurrencies. The filing asserts that the accused were fully aware that they were engaged in an unlawful enterprise, using the darknet to convert bitcoin and other cryptocurrencies into cash.
These individuals, identified as Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel, and Raju Patel, operated without the necessary money transmitting license in New York.
Details from an unsealed FBI agent’s affidavit seeking the arrest of these individuals reveal that they conducted this illicit operation between July 2021 and September 2023. Notably, the U.S. Magistrate judge has granted conditional release to at least one of the named individuals, Naineshkumar Patel, as per court documents.
The filing mentions an unidentified co-conspirator who disclosed that some clients profited from selling drugs, and the most affluent clients were hackers. This co-conspirator informed an undercover officer that he had generated approximately $30 million over a three-year period by exchanging cash for virtual currency.
See also: FinCEN Cracks Down on Crypto Mixers for Money Laundering and Security Risks
On February 7, 2023, law enforcement apprehended an individual who had been mailing cash packages on behalf of the undisclosed co-conspirator from a post office in Westchester County, New York. This arrested individual later became a confidential source and, over the following eight months, cooperated with law enforcement in about 80 controlled cash pick-ups, amounting to roughly $15 million.
The court filing includes photographic and video surveillance evidence demonstrating that the accused were conducting these activities without the necessary registrations and licenses required for a money-transmitting business in New York.
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