Trio Charged with Laundering $10 Million in Cryptocurrency, Face 30 Years in Prison

Three individuals—Zhong Shi Gao, Naifeng Xu, and Fei Jiang—have been accused by the U.S. Department of Justice of laundering over $10 million in cryptocurrency. If found guilty, these individuals might face a maximum of 30 years in federal prison, as revealed by the United States Attorney for the Southern District of New York in an announcement made on Thursday.

The scheme orchestrated by the trio involved a complex network. Foreign nationals from China and Taiwan living in the United States were recruited to open bank accounts, which were then handed over to the defendants. Subsequently, the alleged scammers would create transactions, claim these transactions were unauthorized, prompting the banks to credit their accounts. Following this, the funds would either be withdrawn as cash or used to buy cryptocurrency, swiftly shifted to “foreign” cryptocurrency exchanges.

FBI Assistant Director James Smith condemned the actions, emphasizing the damage caused to institutions and the increased difficulty in reporting suspicious transfers due to such schemes. He warned potential wrongdoers, stating that the arrests serve as a cautionary tale for anyone contemplating bank fraud, reassuring that the FBI would ensure accountability within the criminal justice system.

The apprehension of Gao, Xu, and Jiang was made possible through a joint operation conducted by the FBI’s Oklahoma City field office and the bureau’s Asian and African Organized Crime squad. Each defendant faces three charges, including conspiracy to commit bank and wire fraud, money laundering, and identity theft. The trial for the accused individuals will be presided over by U.S. District Judge Colleen McMahon.

The investigation sheds light on the increasing complexity and international nature of financial crimes involving cryptocurrencies, emphasizing the collaborative efforts required among law enforcement agencies to combat such fraudulent activities.

Source: Decrypt

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Coinbase CEO Optimistic about Crypto’s Future Post-Historic Binance Settlement
November 29, 2023By
Neuralink Secures $43 Million in Fresh Funding, Eyes Innovation in Brain-Computer Interface Technology
November 27, 2023By
ECB President Christine Lagarde’s Son Loses Big on Crypto Against Mother’s Advice
November 25, 2023By

Advertisement

Video Posts

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin38,111 0.26 % 1.92 % 4.03 %
Ethereum2,052.9 0.19 % 0.98 % 0.85 %
Tether1.000 0.05 % 0.00 % 0.03 %
BNB228.17 0.41 % 0.68 % 2.64 %
XRP0.6116 0.01 % 0.52 % 2.56 %
Solana60.70 0.12 % 7.94 % 10.11 %
USDC0.9997 0.05 % 0.01 % 0.05 %
Lido Staked Ether2,051.6 0.15 % 0.91 % 0.83 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %