Trung Nguyen, a 48-year-old from Danvers, was recently sentenced to six years in prison for his involvement in unauthorized Bitcoin activities. Judge Richard G. Stearns ordered five years behind bars, three years of supervised release, and forfeiture of $1,513,000.04. The trial, named DCS420, lasted five days before Nguyen was convicted in November 2024 for running an unlicensed Bitcoin business and money laundering. Although he was found guilty of these crimes, he was acquitted of the money fraud charge.
During the period from 2017 to 2020, Nguyen’s company, National Vending, facilitated illegal transactions for scammers and a drug dealer. He operated under the guise of a legitimate vending machine business but was, in reality, exchanging cash for Bitcoin, primarily for illicit purposes. In one instance in 2018, he received $250,000 in multiple transactions from a drug trafficker. Additionally, he collected money from victims of romance scams across several states, instructing them to convert cash to Bitcoin, which was then sent to overseas fraudsters.
Nguyen’s actions violated federal regulations, as virtual currency exchangers are required to register with FinCEN and report transactions exceeding $10,000. Despite knowing the funds were illicit, Nguyen used encrypted messaging and software to conceal his Bitcoin dealings. He strategically divided large deposits to avoid detection, setting up a fake business front and omitting references to Bitcoin. Law enforcement, including Homeland Security Investigations, IRS Criminal Investigation, and the U.S. Postal Inspection Service, uncovered Nguyen’s scheme, which funneled illegal money into the legitimate economy. The government’s crackdown on cryptocurrency crimes demonstrates its commitment to combating illegal fund transfers associated with fraud and drug trafficking.
