A Massachusetts man has been sentenced to six years in federal prison for running an unregistered Bitcoin money transmitting business that processed over $1 million in cash, some of which was linked to drug trafficking and online scams, according to a statement released by the U.S. Department of Justice on Friday.
Trung Nguyen, also known by his alias “DCS420,” was convicted in November 2024 of conducting an unlicensed money transmitting business and money laundering. In addition to his prison sentence, he was ordered to forfeit more than $1.5 million and will serve three years of supervised release following incarceration.
A Business That Operated in the Shadows
From 2017 to 2020, Nguyen operated a business called National Vending, which offered Bitcoin-for-cash services under the guise of a vending machine operation. However, prosecutors say the business was anything but ordinary. It was never registered with the Financial Crimes Enforcement Network (FinCEN), and it ignored key federal anti-money laundering (AML) laws.
The DOJ outlined how Nguyen deliberately concealed the true nature of his operations. He used encrypted messaging apps to communicate with clients, made structured cash deposits to avoid detection, and used techniques designed to obfuscate transaction trails.
“He used encrypted messaging apps to communicate with customers, using technologies that made it more difficult to trace Bitcoin transactions and breaking cash deposits of more than $10,000 into smaller cash deposits over consecutive days or at different branches of the same bank,” said the U.S. Attorney’s Office for the District of Massachusetts.
Serving Criminals and Scammers
According to court documents, Nguyen’s client base included a methamphetamine dealer and individuals involved in romance scams, further highlighting the illegal scope of the operation. By failing to verify customers or report suspicious activity, Nguyen’s business facilitated the anonymous movement of illicit funds, undermining efforts to combat financial crime.
Broader Context: DOJ Cracks Down on Crypto Crimes
Nguyen’s sentencing comes amid a wave of enforcement actions by U.S. prosecutors aimed at cleaning up the crypto sector. Earlier this month, Alex Mashinsky, the founder of the now-bankrupt Celsius Network, was sentenced to 12 years in prison for defrauding customers out of billions of dollars. Additionally, prosecutors recently narrowed charges against Tornado Cash co-founder Roman Storm, and the DOJ is reportedly investigating a breach at Coinbase involving overseas staff bribery.
These cases underscore the DOJ’s growing focus on compliance, transparency, and consumer protection within the crypto industry.
Outlook
The Nguyen case is another example of the consequences that come from operating outside regulatory frameworks, even in decentralized finance. As digital assets become more mainstream, enforcement agencies are doubling down on unregistered businesses and ensuring that crypto players adhere to established AML standards.
Crypto entrepreneurs are now on notice: regulatory evasion is no longer a gray area—it’s a prosecutable offense.
