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Six Indians in New York organized a multimillion dollar cryptocurrency scam, which the FBI has exposed


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    The US FBI has charged six Indians in a million-dollar cryptocurrency scam according to media reports. The six Indians--Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel and Raju Patel--allegedly operated an illegal $30 million money-transmitting business using cryptocurrencies, according to Coindesk report.

    As per the FBI's investigation, the six Indians conducted illegal business by using the darknet to convert Bitcoin or other cryptocurrencies into cash between July 2021 and September 2023.

    Also read: Bitcoin soars to $35,000, at one-and-a-half-year high on ETF bets

    The FBI began an investigation in around April 2021 when one of the officials identified a vendor on multiple dark web marketplaces who offered a service to ship cash via the US Postal Service in exchange for Bitcoin or other cryptocurrency.

    Law enforcement arrested an individual who had been mailing packages of cash from a post office in Westchester County, New York, according to a media report citing a court document.

    The informant obtained the cash by meeting people around three times a week and receiving amounts ranging between $100,000 and $300,000 each time. The locations were discussed on Telegram and WhatsApp.

    Also read: Bitcoin spiked 58% in last 1 year. Is this the time to relook at cryptocurrencies as a credible asset class?

    FBI investigation revealed that one of the men made frequent trips outside of New York, including to New Jersey, Massachusetts, Georgia, and Pennsylvania. Another two men made trips to and from South Carolina.

    One of the arrested men told the law enforcement agency that his wealthiest clients were hackers and some made money selling drugs.

    The six Indians were conspired to transmit money illegally through an informal value transfer network, Coindesk added.

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    Updated: 25 Oct 2023, 02:17 PM IST

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