In a decisive move against illicit cryptocurrency activity, Trung Nguyen, a Massachusetts resident, has been sentenced to six years in federal prison for running a covert Bitcoin laundering scheme. The court also ordered him to forfeit $1.5 million, a significant blow to his operations that preyed on anonymity and regulatory gaps.
Nguyen’s sentencing took place in Boston federal court on May 22, with Judge Richard Stearns handing down the penalty. Beyond his prison term, Nguyen will face an additional three years of supervised release, underscoring the seriousness of his crimes. The U.S. Attorney’s Office in Boston confirmed the outcome, highlighting Nguyen’s role in operating an unlicensed money transmission business under the guise of a vending machine company.
Between September 2017 and October 2020, Nguyen ran National Vending — a deceptive front designed to disguise his actual activities. Prosecutors detailed how he applied tactics learned from an online course specifically aimed at helping illicit operators avoid detection by banks, regulators, and cryptocurrency exchanges. By posing as a traditional vending machine company, complete with fabricated suppliers and a cash deposit model, Nguyen carefully obscured his true business: converting cash into Bitcoin without asking questions or registering with authorities.
What makes Nguyen’s operation particularly troubling is the clientele it attracted. The Justice Department’s case revealed that among his customers were victims of scams who had been duped into turning over cash to overseas fraudsters — who then directed them to convert that money into Bitcoin via Nguyen’s service. There was also a documented instance involving a drug dealer who funneled $250,000 through Nguyen in 10 separate cash transactions in 2018.
Despite federal laws mandating registration with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the filing of Suspicious Activity Reports (SARs), Nguyen deliberately ignored these requirements. Prosecutors pointed out that he failed to file any SARs or Currency Transaction Reports, even when accepting cash deposits exceeding $10,000 — a clear violation of Anti-Money Laundering (AML) regulations.
Nguyen’s downfall came thanks to a targeted law enforcement sting. Authorities conducting undercover operations met with Nguyen multiple times, posing as clients interested in converting large sums of cash to Bitcoin. Nguyen accepted these payments in person and provided Bitcoin in return, charging approximately a 5% commission. The use of encrypted messaging platforms and transaction-splitting tactics — where cash deposits were broken into smaller amounts across several days and bank branches — showcased the sophistication of Nguyen’s attempt to stay under the radar.
The criminal charges against Nguyen included operating an unlicensed money transmission business and two counts of money laundering. While he initially pleaded not guilty in June 2023, a jury ultimately found him guilty of the unlicensed business charge and one count of money laundering in November. He was acquitted on a separate money laundering count.
Nguyen’s case serves as a stark reminder that cryptocurrency’s promise of anonymity can attract criminal abuse but also that law enforcement is adapting its strategies to tackle such illicit activity. By dismantling schemes like Nguyen’s, authorities aim to ensure that crypto markets remain transparent and compliant, protecting everyday users from falling victim to criminal enterprises masked behind digital assets.
