The Federal Bureau of Investigation (FBI) has reportedly busted a group of Indian nationals who were allegedly operating an unlicensed business converting cryptocurrency into cash for customers seeking anonymity.
The Westfair Business Journal reports that five of the six suspects were arrested on October 17 and charged with running an unlicensed money transmission business.
Indian citizens Raju Patel, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel and Shaileshkumar Goyani were named in the complaint.
Daniel A. Hochheiser, an attorney for Goyani, said the allegations against his client are unproven.
“If and when a grand jury returns an indictment, Goyani will enter a not guilty plea.”
According to court documents, the suspects delivered cash on behalf of a co-conspirator who offered services on darknet marketplaces and peer-to-peer exchanges to send cash via express mail or U.S. Postal Service priority mail in exchange for Bitcoin (BTC ) and other cryptocurrencies.
Authorities cracked down on the illegal operation after arresting an individual who had been sending packages containing cash from a post office in Westchester County, New York, on behalf of the co-conspirator. The person in question later became a confidential source for the FBI.
Through the 80 monitored cash withdrawals in which the confidential source had agreed to participate, the FBI learned that the bundles of cash had been delivered by the six suspects on behalf of the unnamed co-conspirator.
“From February 10, 2023 through September 27, 2023, CS-1 (confidential source), as part of its collaboration, arranged approximately 80 controlled cash collections totaling approximately $15,067,000.”
FBI Special Agent Lawrence Lonergan says the company is violating state and federal laws.
“By failing to register with FinCEN (Financial Crimes Enforcement Network), a money transmission company prevents the Treasury Department from ensuring that the company properly files CTRs (currency transaction reports) and SARs (suspicious activity reports).
As a result, an unregistered money-sending company can operate as a shadow bank through which money can pass without being subject to the controls that Congress has attempted to impose on the United States financial system.”
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