FBI Exposes $30M Crypto Business Scam In New York, 6 Charged
Nova Reyes
Markets Navigator
TL;DR
The FBI has charged six individuals in connection with a $30 million cryptocurrency scam in New York. This operation involved illegal money transmission without proper licensing and utilized the darknet for transactions.
Key Takeaways
- Six individuals charged for a $30 million cryptocurrency scam.
- The operation was conducted without a money-transmitting license.
- Activities included converting cryptocurrencies into cash via the darknet.
- A confidential informant aided the investigation, leading to $15 million in cash pick-ups.
- The National Cryptocurrency Enforcement Team (NCET) has been established to combat such crimes.
What Were the Dealings?
The FBI's investigation revealed that between July 2021 and September 2023, the accused conducted illegal activities using the darknet. They converted Bitcoin and other cryptocurrencies into cash, operating without the necessary licenses.
How Did the Investigation Unfold?
In February 2023, law enforcement arrested an individual who was mailing cash on behalf of a co-conspirator. This person later became a confidential informant, assisting in approximately 80 controlled cash pick-ups totaling $15 million.
What Evidence Supports the Case?
The case is supported by substantial photographic and video surveillance evidence, which strengthens the claims against the accused. This evidence indicates that the individuals operated unregistered and without the required licenses.
What is the National Cryptocurrency Enforcement Team (NCET)?
In response to the growing threat of cryptocurrency-related crimes, Deputy Attorney General Lisa Monaco announced the formation of the NCET. This team is dedicated to investigating and prosecuting cryptocurrency scams, focusing on crypto exchanges and digital asset infrastructure providers.
What is the NCET's Mission?
The NCET aims to enhance the capabilities of law enforcement agencies both in the U.S. and globally. The goal is to equip these agencies with the necessary tools and knowledge to effectively investigate and prosecute serious crimes involving cryptocurrencies.
A Quick Recap
The FBI has uncovered a $30 million cryptocurrency scam in New York, charging six individuals for conducting illegal money transmission operations. Their activities included using the darknet to convert cryptocurrencies into cash. The investigation was bolstered by a confidential informant and significant surveillance evidence. In response, the U.S. government has established the NCET to combat cryptocurrency-related crimes on a global scale.