In a significant development in the realm of cryptocurrency, a 48-year-old Indo-Canadian entrepreneur, Firoz Patel, has been detained by a US district court following his indictment on charges of laundering over $24 million worth of Bitcoin. The Department of Justice revealed that the indictment consisted of two counts, including money laundering and engaging in monetary transactions derived from specified unlawful activity.
According to the press release issued by the Department of Justice, US District Court Judge Dabney L. Friedrich ordered the detention of Patel pending trial. The charges against Patel are a result of his involvement as the former operator of Payza.com, an online platform accused of operating an unlicensed money service business. Prosecutors alleged that Payza.com processed more than $250 million in transactions.
Patel, along with his brother Ferhan, 42, and their company MH Pillars, which operated as Payza, had previously faced prosecution in the US District Court of Columbia. The charges against them included conspiracy to commit crimes against the US by running an unlicensed money-transmitting business and laundering monetary instruments. Both brothers pleaded guilty to the charges.
As part of Firoz Patel’s plea agreement, he was obligated to disclose all known assets to the US government. However, recent court documents have revealed that between his sentencing and reporting dates, Patel transferred 450 BTC, valued at $24,020,699.83, from Payza.com to an account at a virtual currency exchange in the UK. The Bitcoin in question would have been subject to forfeiture in Patel’s previous criminal case.
The investigation into the matter uncovered that the virtual currency exchange account was opened using Patel’s father’s name and date of birth. However, it was controlled by Firoz Patel, who utilised his own email address and phone number. Further inquiries revealed that the responses regarding the account and the substantial deposit were received under the name of an employee affiliated with a company in India associated with Payza. As a result, the account containing the 450 Bitcoin was subsequently frozen.
This latest development highlights the continued efforts of authorities to combat illicit activities within the cryptocurrency industry. The case against Firoz Patel serves as a reminder of the importance of adhering to legal frameworks and regulations in the world of digital assets.
Disclaimer: The information provided in this article is based on publicly available sources and serves as general information only.
