According to an announcement from the United States Attorney for the Southern District of New York, three individuals are facing accusations of laundering.
According to an announcement from the United States Attorney for the Southern District of New York, three individuals are facing accusations of laundering more than $10 million in cryptocurrency and could potentially receive a maximum prison sentence of 30 years. The U.S. Department of Justice has charged Zhong Shi Gao, Naifeng Xu, and Fei Jiang in connection with this alleged scheme.
The charges leveled against them include conspiracy to commit bank and wire fraud, money laundering, and identity theft. The trial for these charges will be overseen by U.S. District Judge Colleen McMahon. The investigation leading to their arrest was a joint effort between the FBI's Oklahoma City field office and the bureau's Asian and African Organized Crime squad.
As per reports, the accused individuals allegedly recruited foreign nationals from China and Taiwan who were residing in the United States to open bank accounts. These accounts were then handed over to the defendants. The scammers are said to have created transactions and falsely claimed that they were unauthorized, leading the banks to credit their accounts. The funds were subsequently withdrawn as cash or used to purchase cryptocurrencies, swiftly moving them to "foreign" cryptocurrency exchanges.
U.S. Attorney Damian Williams emphasized that these charges are intended as a warning to fraudsters and cybercriminals who seek to exploit cryptocurrencies for the purpose of concealing their identities.
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