FBI Nabs Trio for $10M Bank Fraud and Crypto Conversion

• Three Individuals Allegedly Schemed to Fraudulently Convert $10M into Cryptocurrency
• Details of the Alleged Fraud
• A Warning to Cybercriminals
• The Charges
• Further Allegations
• Related News: Six Charged for Allegedly Running $30M Cryptocurrency-based Money Transmitting Business

Three Individuals Allegedly Schemed to Fraudulently Convert $10M into Cryptocurrency

According to U.S. Attorney Damian Williams, three individuals recently scammed banks in the New York area out of over $10 million and attempted to launder the proceeds through cryptocurrency conversions.

Details of the Alleged Fraud

The three men, Zhong Shi Gao, Naifeng Xu, and Fei Jiang, were reported to have siphoned millions of dollars from nearly a dozen financial institutions throughout the New York metropolitan area between 2018 and 2022. They are alleged to have duped the banks by posing as victims of fraudulent money transfers, thereby triggering the institutions to credit their accounts with the supposedly unauthorised transfer amounts. This strategy allegedly doubled their funds, as described in the indictment.

A Warning to Cybercriminals

This indictment should serve as a stern warning for fraudsters and cybercriminals who believe they can use cryptocurrency as a veil for their illicit activities. Together with our partnering agencies, we are committed to tracking down and holding such individuals accountable for their actions, stated Williams.

The Charges

All three accused individuals have been arrested by the Federal Bureau of Investigation and are facing four criminal charges in the U.S. District Court for the Southern District of New York. These charges include bank fraud conspiracy, conspiracy to commit wire fraud affecting a financial institution, money laundering conspiracy, and aggravated identity theft. If convicted of all charges, the accused could face a cumulative sentence of nearly 100 years, according to the statement.

Further Allegations

Investigators have reported that the trio involved foreign nationals from China and Taiwan to open U.S. bank accounts, which they could subsequently use to manage the fraudulent transfers they claimed were unwanted.

Related News: Six Charged for Allegedly Running $30M Cryptocurrency-based Money Transmitting Business

Edited by Jonathan Stoker