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- A U.S. man has been sentenced to six years in federal prison for laundering over $1 million in crypto through a fake vending machine business
- Trung Nguyen’s company, National Vending, operated without registering with the Financial Crimes Enforcement Network and lacked required anti-money laundering protocols
- Nguyen accepted large cash payments from individuals involved in criminal activities, including a methamphetamine dealer and victims of romance scams
Trung Nguyen, a 48-year-old resident of Danvers, Massachusetts, has been sentenced to six years in federal prison for operating an unlicensed Bitcoin exchange that laundered over $1 million. Nguyen’s company, National Vending, falsely presented itself as a vending machine business while facilitating cash-to-Bitcoin transactions without adhering to federal regulations. Nguyen accepted substantial sums from individuals linked to criminal activities, including drug trafficking and fraud schemes.
Vending Machines Only Supplied Money Laundering Services
Between 2017 and 2020, Nguyen operated National Vending, a business that converted cash into Bitcoin for a fee. He misrepresented the business to banks and authorities, claiming it was a vending machine enterprise, while in the background, he was using encrypted messaging apps to communicate with clients and structured cash deposits to avoid detection, breaking them into smaller amounts under the $10,000 reporting threshold.
Nguyen’s clientele included individuals involved in illicit activities: in 2018, he accepted $250,000 from a person he knew to be a methamphetamine dealer, and, between 2019 and 2020, he processed $445,000 from three victims of romance scams, who were deceived into sending funds to overseas fraudsters.
These transactions were conducted without the necessary due diligence or reporting, violating federal laws designed to prevent money laundering. He also failed to register the company with the Financial Crimes Enforcement Network (FinCEN).
Six-Year Sentence
In November 2024, Nguyen was convicted of operating an unlicensed money-transmitting business and concealment of money laundering, with sentencing due this month. Last week, U.S. District Judge Richard G. Stearns sentenced him to six years in prison, followed by three years of supervised release, while he was also ordered to forfeit over $1.5 million in illegal proceeds.
Nguyen is the latest individual to find out that crypto transactions are far from anonymous and, in fact, lead directly to the perpetrators’ door once the chain is intercepted.
