A Massachusetts man has been sentenced to six years in federal prison after running an illegal money transmission business that laundered over $1 million in cash through Bitcoin. The man, Trung Nguyen of Danvers, operated a covert operation disguised as a vending machine company while assisting drug dealers and scammers in converting cash into cryptocurrency without raising alarms.
According to the U.S. Department of Justice, Nguyen ran the unlicensed business—named National Vending—between September 2017 and October 2020. During that time, he exchanged large amounts of cash for Bitcoin with no regard for the source of the funds. The business lacked required anti-money laundering protocols and was never registered with the Financial Crimes Enforcement Network (FinCEN), which is mandated for all legitimate money transmitters.
Nguyen’s operation attracted clients involved in criminal activity, including one individual who openly identified as a methamphetamine dealer. This person provided Nguyen with $250,000 in cash in exchange for cryptocurrency. Another significant portion of the illegal transactions involved $445,000 in cash from victims of romance scams. These individuals were manipulated into transferring money to foreign fraudsters who requested payment in Bitcoin.
Rather than declining suspicious transactions, Nguyen welcomed them with a "no questions asked" policy. He charged fees in exchange for converting cash into Bitcoin, enabling criminals to obscure the origin of their money. He further complicated the trail by using encrypted messaging apps to communicate with clients, deliberately obfuscating Bitcoin transactions, and structuring large deposits to evade federal reporting requirements.
Under federal law, any cash transaction over $10,000 must be reported. Nguyen, aware of this regulation, systematically broke up large deposits into smaller sums spread across multiple banks and days. This structuring method is commonly used in money laundering to avoid detection by authorities.
The U.S. Attorney’s Office also revealed that Nguyen actively attempted to learn how to better conceal his illicit activities. He took a specialized course that advised him to fabricate a list of suppliers, build a false cover story for his business, and to never mention the word “Bitcoin” in any financial dealings.
To banks and financial institutions, Nguyen portrayed National Vending as a legitimate vending machine business. This false front helped him avoid scrutiny while enabling large volumes of illegal cash to be funneled through the financial system and transformed into digital assets.
Nguyen’s actions came under federal investigation and culminated in a five-day trial in November. He was found guilty and subsequently sentenced by Judge Richard G. Stearns to six years in prison, followed by three years of supervised release. Additionally, Nguyen has been ordered to forfeit $1.5 million in assets linked to his crimes.
Acting U.S. Attorney Joshua Levy emphasized that this conviction serves as a warning to others attempting to use cryptocurrency for illicit purposes. “This defendant’s ‘no questions asked’ money laundering operation allowed a known drug dealer to turn their dirty cash into more deadly meth to pump onto our streets and it allowed scammers to swindle vulnerable victims out of their hard-earned savings,” Levy said.
Law enforcement and prosecutors are increasingly cracking down on misuse of cryptocurrency, which—while often promoted as a decentralized and anonymous form of currency—can still be traced with the right tools and resources. In this case, despite the deliberate efforts to mask the transactions, authorities were able to identify and link the financial trail to Nguyen and his unlicensed enterprise.
The U.S. government has consistently reminded crypto operators and users that converting large amounts of money without proper registration and anti-money laundering protocols is a federal crime. Businesses involved in money transmission, including crypto-related services, must comply with all federal guidelines to operate legally.
Nguyen’s case highlights a growing trend of individuals attempting to exploit the anonymity of digital currency to facilitate illegal activities. It also underscores the importance of robust financial regulations and the necessity of public awareness around crypto scams and fraud.
For individuals looking to invest or interact with cryptocurrency, experts recommend only using regulated exchanges that comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. Moreover, it is crucial to be cautious when approached with investment opportunities or online relationships that request cryptocurrency transactions—common tactics used in scams similar to those involved in this case.
The National Vending case serves as a stark reminder that while cryptocurrency offers innovation and financial freedom, it must be used responsibly and within the confines of the law. As technology continues to evolve, law enforcement is adapting its methods to track and prosecute digital financial crimes.
Key Takeaways:
Trung Nguyen operated an illegal money transmission business under the name National Vending from 2017 to 2020.
He laundered over $1 million in cash for drug dealers and scam victims, converting it into Bitcoin without required compliance checks.
Nguyen used encrypted apps, obfuscated transactions, and structured deposits to evade detection.
He has been sentenced to six years in prison and must forfeit $1.5 million.
Authorities warn that cryptocurrency is not a loophole for anonymous financial crime, and offenders will be tracked and prosecuted.
As digital currencies become more mainstream, cases like Nguyen’s serve as a precedent that financial crimes involving crypto will not go unnoticed. Regulatory compliance and vigilance are more important than ever for both businesses and individuals in the crypto space.
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