The Federal Bureau of Investigation (FBI) has recently taken action against six individuals for their involvement in an unlicensed money-transmitting business that dealt with $30 million in cryptocurrencies. The charges were officially filed in the Southern District of New York, as revealed through court documents. These individuals are accused of converting bitcoin and other digital currencies into cash through the darknet without the necessary licenses for money transmission in New York.
The operations allegedly took place between July 2021 and September 2023, according to an unsealed affidavit from an FBI agent. The individuals implicated in the charges are Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel, and Raju Patel. It is worth noting that Naineshkumar Patel has been conditionally released, as stated in a subsequent court document.
“An unidentified co-conspirator disclosed to an undercover officer that the exchange of cryptocurrency for cash had amassed approximately $30 million over the span of three years.”
Notably, the co-conspirator also mentioned that some of the clients engaged in illegal activities, such as drug trafficking. The most affluent clients were identified as hackers. In a significant development, law enforcement officers arrested an individual on February 7, 2023, who had been mailing packages of cash on behalf of the undisclosed co-conspirator. This individual, operating from a post office in Westchester County, New York, subsequently cooperated with the FBI.
Over the course of eight months, the confidential source was involved in around 80 controlled pick-ups, totaling an estimated $15 million in cash. Photographic and video evidence presented in the court filing demonstrated that none of the accused individuals operated with a licensed money-transmitting business, which is a requirement in New York.
The FBI’s Commitment to Combatting Crypto Crime
The FBI has demonstrated its dedication to addressing cryptocurrency-related crimes through various initiatives. One such initiative is the National Cryptocurrency Enforcement Team (NCET), established by the FBI in February 2022. Deputy Attorney General Lisa Monaco announced the formation of the NCET during a keynote address at the Munich Cyber Security Conference.
“I think we are sending a message that cryptocurrencies and virtual currencies should not be considered a safe haven,” Monaco emphasized during a follow-up Q&A session.
The NCET specializes in investigating crimes involving cryptocurrencies and focuses on different aspects of the digital asset ecosystem, including crypto exchanges, mixers, and tumblers. Their goal is to identify and combat the criminal misuse of cryptocurrencies.
