A man from Massachusetts has received a six-year federal prison sentence for operating an unlicensed cash-to-Bitcoin service, which prosecutors claim facilitated money laundering for scammers as well as a methamphetamine dealer.
Trung Nguyen, 48, from Danvers, was sentenced in a Boston federal court on Thursday. US District Judge Richard G. Stearns also imposed three years of supervised release and ordered Nguyen to forfeit over $1.5 million in proceeds deemed illegal.
Nguyen, who operated under the alias “DCS420,” was convicted in November 2024 on charges of money laundering and running an unlicensed money transmitting business.
Image Source: DoJ
Phony Business Concealed $1 Million Bitcoin Laundering
According to prosecutors, Nguyen’s operation was concealed within a company he claimed was a vending machine business, called National Vending, LLC. In actuality, it functioned as a Bitcoin exchange service that circumvented federal anti-money laundering requirements.
Between 2017 and 2020, he converted more than $1 million in cash into Bitcoin, which included a $250,000 transaction with an individual who identified themselves as involved in meth trafficking.
Under federal regulations, those dealing in virtual currency are classified as money transmitters and must register with the Financial Crimes Enforcement Network (FinCEN). They are obligated to establish anti-money laundering measures and to report any large or suspicious transactions. Nguyen failed to comply with these requirements while handling substantial amounts for clients engaged in illicit activities.
Jurors Concluded Nguyen Intentionally Ignored Laws Designed to Protect Victims
The Justice Department reported that Nguyen processed hundreds of thousands of dollars originating from victims of romance scams, who were deceived into sending Bitcoin to fraudsters operating overseas. He maintained encrypted communication with his clients and intentionally avoided triggering reporting requirements by splitting up significant transactions. Additionally, he attended a training course that advised him to devise a cover story and to refrain from mentioning Bitcoin.
Nguyen was indicted in May 2023 and found guilty over a year later after a federal jury determined that he consciously disregarded laws intended to combat financial crimes. Officials indicated that his conduct not only aided criminals in obscuring their trails but also placed vulnerable victims at greater risk.
In a related development, a federal jury in the Eastern District of New York recently convicted Braden Karony, the former CEO of SafeMoon, on multiple counts including conspiracy to commit securities fraud, wire fraud, and money laundering. Following a 12-day trial that commenced on May 5, Karony could face a sentence of up to 45 years, along with the forfeiture of illicit earnings.
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