In a recent investigation involving cryptocurrency, the United States Federal Bureau of Investigation (FBI) has successfully infiltrated a group of Indian citizens suspected of engaging in illicit activities related to cryptocurrency exchanges worth over $15 million in cash.
Revealing Cryptocurrency Crime
According to recent reports, on October 17, five out of the six suspects were apprehended and subsequently charged in the US District Court in White Plains. The charges primarily revolve around operating an unlicensed money-transmitting business. This extensive investigation was carried out with the assistance of law enforcement agents who monitored 80 instances of “cash hand-offs.”
The FBI’s investigation was initiated in April 2021 when they identified a suspect operating within the criminal marketplaces of the “dark web.” Although the individual’s identity remains undisclosed in the criminal complaint, they are believed to be a co-conspirator of the local suspects who have been arrested. Notably, this suspect offered to exchange cash for cryptocurrency, catering to customers seeking anonymity for their activities.
The Criminal Complaint
The undisclosed co-conspirator disclosed to an undercover officer in January that some of their customers were involved in drug sales, while wealthier clients were hackers. It was claimed that the co-conspirator had accumulated approximately $30 million over three years through cash-for-cryptocurrency transactions.
In February, an individual responsible for mailing packages of cash on behalf of the co-conspirator was arrested. The complaint revealed that this individual had been receiving sacks of cash from various individuals, three times a week for 18 months, at a post office in Westchester County. The cash bundles varied from $100,000 to $300,000.
In an attempt to receive leniency during sentencing, this individual agreed to assist the FBI with their investigation. Over several months, from February 10 to September 27, they reportedly participated in 80 controlled cash pick-ups amounting to $15,067,000.
Raju “Jay” Patel from Flushing Queens, one of the arrested individuals, played a significant role in the operation. The complaint alleges his involvement in 58 cash transfers totaling $10.8 million. Raju would collect cash from various locations in George, Massachusetts, North Carolina, Pennsylvania, and South Carolina, and then coordinate the transfers with the co-conspirator and the FBI’s confidential source.
On March 6, Raju allegedly arranged an exchange of $250,000 at a Tarrytown supermarket parking lot. Law enforcement agents conducted surveillance and captured Raju leaving his Queens apartment with an orange cloth bag, which he handed over to the FBI’s confidential source upon arrival in Tarrytown. The bag reportedly contained $249,715.
Illicit Cash Exchanges
Similar exchanges took place in a parking lot in Port Chester, further implicating the suspects involved. On August 6, Shaileshkumar Goyani allegedly handed over a bag containing $114,000 to the FBI’s confidential source.
Apart from Goyani, the complaint identifies Brijeshkumar “Samir” Patel, Hirenkkumar Patel, Naineshkumar Patel, and Nileshkumar Patel as additional suspects in the case. All the suspects face charges related to operating an unlicensed money-transmitting business, violating both New York and federal laws.
According to an affidavit by FBI agent Lawrence Lonergan, these unlicensed money-transmitting businesses operate as shadow banks, allowing funds to pass through without undergoing the scrutiny imposed by Congress on the United States financial system.
While the allegations against Goyani’s involvement in cryptocurrency fraud remain unproven, his defense attorney, Daniel A. Hochheiser, emphasizes that his client has not been indicted by a grand jury. Hochheiser further stated that if and when an indictment is issued, Goyani intends to plead not guilty.