American sentenced to six years in prison for circumventing money laundering rules with bitcoin trade

A federal court in Boston has sentenced Trung Nguyen from Danvers (Massachusetts) to six years in prison, followed by three years of supervision, for running a clandestine service that converted cash in Bitcoin without the compulsory anti-money laundering controls.

In addition, the American judge Richard Stearns has also imposed a forfeiture of 1.5 million dollars on Trung Nguyen.

Service hidden behind sales machines

Nguyen carried out its exchange office activities under the cover of a automatic company. He had learned through an online course how he:

• Used fictional supplier lists;
• The term ‘Bitcoin’ where possible avoided;
• Cash deposits split into smaller amounts;
• Used several days and bank branches to avoid detection.

This method enabled him to convert more than 1 million dollars into cash without registration with the Financial Crimes Enforcement Network (FINCEN), as required by the American anti-money laundering regulations.

Clientele and undercover operation

Among Nguyen’s customers were scammers who themselves were a victim of foreign scams and a drug dealer who in 2018 departed a total of $ 250,000 in cash through ten separate transactions. He often met clients personally, which gave undercover agents the opportunity to catch him in the act.

In the May 2023 declaration, the Public Prosecution Service described how Nguyen took cash during meetings with agents and sent Bitcoin in return, with a committee of around 5 %.

Procedure and pronunciation of jury

• June 2023: Nguyen argued innocently in all charges (illegal money transactions and twice money laundering).
• November 2024: Jury ruled that he was guilty of exploiting an illegal exchange office and one moneywashing complaint; A second money laundering complaint was rejected.

Signal to money launders

With the heavy prison sentence and the million fine, the Ministry of Justice sends a clear signal: those who circumvent the American anti-money laundering laws with Bitcoin transactions, get strict punishments and compulsory forfeiture.