tl;dr
Trung Nguyen of Danvers, Massachusetts, was sentenced to six years in prison for running an unlicensed money transmitting business called National Vending, which converted over $1 million into Bitcoin for scammers and a drug dealer. Nguyen accepted cash from a meth dealer and romance scam victims, c...
Trung Nguyen of Danvers, Massachusetts, was sentenced to six years in prison for operating an unlicensed money transmitting business called National Vending, which laundered over $1 million into Bitcoin for scammers and a drug dealer. Nguyen accepted cash from a meth dealer and victims of romance scams, charging fees for converting these funds into cryptocurrency.
Between 2017 and 2020, Nguyen ran his operation without registration or anti-money laundering measures, deliberately concealing his activities by misrepresenting his business as a vending machine company to banks and crypto exchanges. He utilized encrypted messaging apps to communicate with clients and employed transaction obfuscation techniques to hinder tracking of Bitcoin flows.
To avoid detection, Nguyen split large cash deposits into smaller amounts spread over several days or across different banks. He even took a course on how to hide his business practices, where he was advised to develop a cover story, fabricate supplier lists, and avoid mentioning "Bitcoin" explicitly.
Judge Richard G. Sterns ordered Nguyen to forfeit $1.5 million and serve three years of supervised release after his prison term. The conviction followed a five-day trial during which Nguyen was found guilty of accepting $250,000 from a meth dealer and $445,000 from romance scam victims defrauded by overseas con artists.
Acting U.S. Attorney Joshua Levy emphasized that Bitcoin cannot be used to anonymously launder illicit funds, noting that Nguyen's operation facilitated drug trafficking and victimized vulnerable individuals. National Vending’s lack of compliance with financial regulations highlights ongoing challenges in policing crypto-related financial crimes.