Benzinga - The Federal Bureau of Investigation (FBI) has arrested three individuals involved in a large-scale laundering operation. The scheme is said to have swindled over $10 million in digital assets.
What Happened: As revealed on Thursday by the United States Attorney for the Southern District of New York, the FBI has charged three individuals, Zhong Shi Gao, Naifeng Xu, and Fei Jiang, with a cryptocurrency laundering scheme. The trio could face up to 30 years in federal prison if convicted, according to a report by Decrypt.
According to the Department of Justice, the accused were indicted on three counts: conspiracy to commit bank and wire fraud, money laundering, and identity theft. The FBI’s Oklahoma City field office and the Asian and African Organized Crime squad jointly executed the arrests.
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Why It Matters: The alleged operation involved the recruitment of foreign nationals from China and Taiwan living in the U.S. to open bank accounts. The accused then reportedly executed transactions and claimed them as unauthorized, leading banks to credit their accounts. The funds were then either withdrawn as cash or used to purchase cryptocurrency, which was subsequently transferred to offshore cryptocurrency exchanges.
In response to the arrests, U.S. Attorney Damian Williams warned fraudsters that those attempting to hide their identities using cryptocurrency will be discovered and held accountable.
U.S. District Judge Colleen McMahon will preside over the case, according to the Department of Justice.
Photo by Casimiro PT on Shutterstock
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