Massachusetts Man Convicted in Shocking Bitcoin Money Laundering Scheme

A Massachusetts Man Found Guilty of Money Laundering

A Danvers resident, Trung Nguyen, aged 48, was found guilty of money laundering charges on Friday. Federal prosecutors revealed that he converted over $1 million in cash into Bitcoin, including significant amounts for illicit activities.

The Operation

Nguyen operated National Vending, LLC from 2017 to 2020 without a license, deliberately failing to register with the Financial Crimes Enforcement Network (FinCEN). According to the U.S. Attorney's Office for Massachusetts:

"Nguyen accepted cash from customers and, in exchange for a fee, sent them Bitcoin in return."

Under federal law, virtual currency exchangers, including Bitcoin, are classified as money transmitters and must comply with federal anti-money laundering (AML) regulations.

Criminal Links

Nguyen's operation was notably linked to a methamphetamine dealer, who funneled $250,000 through Nguyen, and several romance scam victims who lost hundreds of thousands of dollars:

• $325,000 from a romance scam victim in Kansas City
• $60,000 from a victim in Glastonbury, Connecticut
• $60,000 from another victim in central Massachusetts

Scammers utilized Nguyen's services to convert cash into Bitcoin to send overseas, exploiting his business for their schemes.

Legal Consequences

Nguyen did not file any currency transaction reports for cash transactions exceeding $10,000 and failed to report suspicious activities. He faces potential decades in prison and substantial fines, with a sentencing date set for February 12.