Trung Nguyen, 48, of Danvers, Massachusetts, has been convicted of money laundering and operating an unlicensed money transmitting business, which facilitated the conversion of over $1 million in cash to Bitcoin, the U.S. Attorney’s Office for the District of Massachusetts announced today.
Between September 2017 and October 2020, Nguyen ran a business called National Vending, LLC, through which he accepted cash payments and, for a fee, provided Bitcoin in return. The business was presented as a vending machine operation, but Nguyen used it as a front for illegal money transmitting activities.
Under federal law, businesses that engage in virtual currency exchanges, like Nguyen’s operation, are required to register with the Financial Crimes Enforcement Network (FinCEN) and comply with anti-money laundering regulations, including filing Currency Transaction Reports for cash exchanges over $10,000. Nguyen, however, failed to meet these legal requirements.
The Department of Justice reported that Nguyen knowingly operated outside the law and processed transactions without the necessary filings. The case revealed disturbing details about the extent of his illicit operations:
- Drug Dealer Transactions: In 2018, Nguyen processed $250,000 worth of Bitcoin transactions for an individual who was later identified as a methamphetamine dealer. This transaction was part of a broader pattern in which Nguyen facilitated the conversion of dirty money into Bitcoin, helping to finance drug trafficking activities.
- Romance Scam Victims: Between 2019 and 2020, Nguyen accepted $445,000 from romance scam victims in Kansas City, Glastonbury, Connecticut, and central Massachusetts. These victims, who had been tricked into believing they were in online relationships, sent cash to Nguyen, which he exchanged for Bitcoin and funneled to foreign scammers. These victims lost significant sums of money to the fraudulent schemes.
Nguyen concealed his illegal activities by operating under the guise of a legitimate business. He used encrypted messaging apps to communicate with clients, employed technology to obscure the transactions, and intentionally split larger cash deposits into amounts under $10,000 to avoid detection.
Acting U.S. Attorney Joshua S. Levy emphasized the far-reaching consequences of Nguyen’s actions: “Money laundering is the lifeblood of a wide swath of criminal conduct. This defendant’s ‘no questions asked’ money laundering operation allowed a known drug dealer to turn their dirty cash into more deadly meth to pump onto our streets, and it allowed scammers to swindle vulnerable victims out of their hard-earned savings.”
The court case against Trung Nguyen is part of a broader crackdown on illegal cryptocurrency exchanges and money laundering in the U.S. The Department of Justice continues to emphasize the importance of anti-money laundering regulations to prevent illegal activity from infiltrating financial systems.
As Nguyen awaits sentencing, he faces significant criminal penalties. His case highlights the growing scrutiny of cryptocurrency businesses and the importance of ensuring that individuals and businesses comply with federal financial regulations designed to prevent criminal exploitation of virtual currencies.