A Massachusetts man who ran an unlicensed cash-to-Bitcoin operation that prosecutors say facilitated money laundering for scammers and a methamphetamine dealer has been sentenced to six years in federal prison.
Trung Nguyen, 48, of Danvers, received the sentence in Boston federal court on Thursday. In addition to the prison term, US District Judge Richard G. Stearns ordered Nguyen to serve 3 years of supervised release and to forfeit over $1.5m in illegal proceeds.
Nguyen, who also went by the alias “DCS420,” was convicted in Nov. 2024 of money laundering and operating an unlicensed money transmitting business.
Image Source: DoJ
Fake Business Masked $1M Bitcoin Laundering Operation
Prosecutors said 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 $1m in cash to Bitcoin, including $250,000 for someone who told him they were a meth dealer.
Under federal law, virtual currency exchangers are classified as money transmitters and must register with the Financial Crimes Enforcement Network, or FinCEN.
They are also required to maintain anti-money laundering programs and file reports on large or suspicious transactions. Nguyen did neither, despite handling multiple six-figure sums for clients involved in criminal activity and scams.
Federal Jury Found Nguyen Knowingly Bypassed Laws Protecting Fraud Victims
The Justice Department revealed that Nguyen processed hundreds of thousands of dollars for romance scam victims. These victims had been tricked into sending Bitcoin to fraudsters overseas. In addition, Nguyen used encrypted messaging to communicate with clients.
He also avoided reporting thresholds by breaking up large deposits. Further, 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 said his actions not only helped criminals hide their tracks, but also put vulnerable victims at further risk.
Separately this week, a federal jury in the Eastern District of New York convicted former SafeMoon CEO Braden Karony of conspiracy to commit securities fraud, wire fraud and money laundering.
The 12-day trial began on May 5. Karony now faces up to 45 years in prison and the forfeiture of illicit gains.
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