Key Takeaways
- Trung Nguyen sentenced to six years for running an unlicensed Bitcoin-for-cash operation.
- He laundered over $1 million, including funds from scam victims and a drug dealer.
- Nguyen used a fake vending machine business to conceal the operation from authorities.
A Massachusetts man who ran a cash-for-Bitcoin business without a license has been sentenced to six years in federal prison.
Trung Nguyen, of Danvers, operated the scheme under the name “National Vending” from 2017 to 2020, concealing the true nature of his business from banks and regulators.
Court proceedings & penalties
Nguyen was sentenced by Judge Richard Stearns in Boston federal court on May 22.
In addition to prison time, he will serve three years of supervised release and must forfeit $1.5 million.
Methods of operation
According to prosecutors, Nguyen learned how to disguise his operation through an online course that instructed him to use a fake vending machine company as a front.
He avoided mentioning “Bitcoin” and created fictitious suppliers to obscure the source and purpose of the cash he handled.
Clientele & legal violations
The business catered to clients that included scam victims and a drug dealer who funneled $250,000 through Nguyen in ten separate transactions.
He failed to register with FinCEN, did not report large cash transactions, and deliberately structured deposits to avoid detection.
Arrest & conviction
Nguyen was arrested after multiple meetings with undercover agents posing as clients.
He accepted large sums of cash and transferred Bitcoin in return, charging over 5% commission.
A jury convicted him in November 2024 on one count of operating an unlicensed money-transmitting business and one count of money laundering.
