Massachusetts Man Sentenced to 6 Years for Running Unlicensed Bitcoin Business

• Trung Nguyen, often known as DCS420, was sentenced to six years in prison and three years of supervised release.
• Nguyen leveraged encrypted messaging apps to communicate with clients, leveraging technologies that made it harder to track BTC transactions. 

A resident of Danvers, a town in Massachusetts, was convicted of operating an unregistered Bitcoin transmitting business and was sentenced as it breached federal anti-money laundering laws. 

On May 23, the resident was sent to six years in prison for operating an unlicensed Bitcoin money transmitting business that authorities claim turns more than $1 million in cash, including money associated with scammers and a drug dealer. 

The Department of Justice (DOJ) of the United States issued a press release on May 23, mentioning that Trung Nguyen, often known as DCS420, was sentenced to six years in prison and three years of supervised release.

The convict was also imposed a penalty of over $1.5 million after being convicted in November 2024 of operating an unlicensed money transmitting business and money laundering. 

Nguyen was reportedly running National Vending between 2017 and 2020, a business that exchanged cash for Bitcoin, but he didn’t register it with FinCEN or comply with anti-money laundering regulations needed under federal law. 

The lawyers claimed that the convict intentionally hid his operation by showing National Vending as a vending machine business and leveraged encrypted messaging to make discovering transactions harder. 

The U.S Attorney’s Office, District of Massachusetts, mentions that Nguyen leveraged encrypted messaging apps to communicate with clients, leveraging technologies that made it harder to track BTC transactions and breaking cash deposits of over $10,000 into smaller cash deposits. 

Another Recent Fraud Case 

At the beginning of May, the founder of Celsius Network, Alex Mashinsky, was sent to jail for 12 years for his role in the bankruptcy of the firm, which cost users billions of dollars. As per the lawyers, Mashinsky cheated thousands of people. 

He stole over $48 million from the company, and most of the people lost their life savings and pleaded guilty to securities and commodities fraud. 

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