A Massachusetts man who operated an unlicensed, cash-to-Bitcoin exchange described by federal prosecutors as a “no questions asked” operation has been sentenced to six years in prison and ordered to forfeit $1.5 million.
Trung Nguyen, of Danvers, was handed the sentence by U.S. District Judge Richard Stearns in Boston federal court on May 22. In addition to prison time, Nguyen will serve three years of supervised release following his incarceration.
Nguyen managed an illicit money-transmitting business known as “National Vending” from September 2017 to October 2020. Prosecutors say he employed a range of deception techniques learned through an online course to mask the true nature of his activities from banks, cryptocurrency platforms, and state regulators.
As part of this scheme, Nguyen posed as a vending machine operator, created a roster of fictitious suppliers, and avoided mentioning “Bitcoin” in transactions to escape regulatory scrutiny.
Authorities revealed that Nguyen’s clientele included scam victims manipulated into converting their money into Bitcoin for overseas fraudsters, and at least one drug trafficker who transferred $250,000 in cash over 10 transactions in 2018.
The Justice Department stated that Nguyen processed over $1 million in Bitcoin transactions while deliberately evading registration requirements with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), as mandated under federal anti-money laundering laws.
To obscure the financial trail, Nguyen reportedly used encrypted messaging services and technologies designed to hinder transaction tracing. He also structured cash deposits into smaller amounts, making them at multiple bank branches over consecutive days to avoid detection.
Nguyen faced charges for operating an unlicensed money-transmitting business and two counts of money laundering. After pleading not guilty in June 2023, he was convicted by a jury in November on the unlicensed operation charge and one count of money laundering. He was acquitted on the second money laundering count.
