Man Sentenced Six Years For Laundering $1.5 Million Via Bitcoin

Trung Nguyen, a 48-year-old resident of Danvers, Massachusetts, has been sentenced to six years in federal prison for operating an illicit cash-to-Bitcoin service that facilitated money laundering for various criminal activities, including scams and drug trafficking. The sentencing, which took place in Boston federal court, also includes a three-year supervised release period and a forfeiture of over $1.5 million in illegal proceeds.

Nguyen, who used the alias “DCS420,” was convicted in November 2024 of money laundering and operating an unlicensed money transmitting business. Prosecutors revealed that Nguyen ran his scheme through a company called National Vending, LLC, which he presented as a vending machine business. In reality, it served as a front for a Bitcoin exchange service that bypassed federal anti-money laundering requirements. Between 2017 and 2020, Nguyen converted over $1 million in cash to Bitcoin, including $250,000 for someone who identified themselves as a meth dealer.

Under federal law, virtual currency exchangers are classified as money transmitters and must register with the Financial Crimes Enforcement Network (FinCEN). They are also required to maintain anti-money laundering programs and file reports on large or suspicious transactions. Nguyen failed to comply with these regulations, despite handling multiple six-figure sums for clients involved in criminal activities and scams.

The Justice Department disclosed that Nguyen processed hundreds of thousands of dollars for romance scam victims who had been tricked into sending Bitcoin to fraudsters overseas. He used encrypted messaging to communicate with clients and avoided reporting thresholds by breaking up large deposits. Additionally, he took a course that advised him to create a cover story and never mention Bitcoin.

Nguyen was indicted in May 2023 and convicted more than a year later after a federal jury found he deliberately flouted laws designed to prevent financial crimes. Authorities stated that his actions not only helped criminals hide their tracks but also put vulnerable victims at further risk.

This case highlights the ongoing efforts by law enforcement to crack down on illicit financial activities involving cryptocurrencies. The sentencing of Nguyen serves as a stark reminder of the legal consequences for those who engage in unlicensed money transmitting businesses and fail to comply with anti-money laundering regulations. The case also underscores the importance of vigilance in the cryptocurrency industry to prevent fraud and money laundering.