An American pleaded guilty to involvement in a large-scale crypto-crime scheme in the US
Date: 2025-11-20 Author: Henry Casey Categories: IN WORLD
The main suspect in the investigation was 45-year-old Kunal Mehta, a California resident. He pleaded guilty to the charges, admitting to participating in a criminal network that operated across several states and used social engineering techniques to illegally acquire digital assets. According to the US Department of Justice, Mehta, who also went by the pseudonyms "Papa," "The Accountant," and "Shrek," admitted to violating the RICO Act and money laundering. He became the eighth member of the group to cooperate with the investigation.
Investigators determined that the organization had existed since at least the fall of 2023 and was aimed at stealing cryptocurrency from individuals across the country. The criminals had fake phone numbers, phishing tools, and specialized equipment for unauthorized access. One of the most serious incidents involved the theft of over 4,100 BTC from a Washington state resident, valued at $263 million at the time.
Mehta's role was primarily laundering the stolen funds. He handled the illicitly obtained funds by converting the cryptocurrency into cash and charging a commission of approximately 10%. To conceal the origin of the funds, they used shell companies and bank transfers registered to proxies. Mehta also helped the scheme participants register expensive cars under false legal entities to conceal their true owners and the value of the property.
The investigation revealed that the stolen funds were spent on a lavish lifestyle. The group members threw parties costing up to half a million dollars a night, purchased expensive watches and jewelry, and rented luxury villas and private jets. The criminals had at their disposal an impressive fleet of 28 luxury cars, including a Lamborghini, a Ferrari, a McLaren, and a Rolls-Royce.
US Attorney Jeanine Ferris Pirro emphasized that authorities intend to bring everyone involved in such crimes to justice and will continue to combat fraud in the crypto space. The FBI, IRS-CI, and the US Attorney's Office for the District of Columbia are working together on the case, reminding citizens of the high level of criminal activity and recommending against sharing verification codes and personal information with strangers.
Simultaneously, another participant in similar operations was sentenced in the US: 39-year-old Shengsheng He received a 51-month prison sentence for laundering $37 million through Axis Digital and banking entities in the Bahamas. He converted investors' investments into USDT stablecoins and transferred them to the scheme's organizers, who were based in Cambodia.
Additionally, 55 people were arrested in Australia as part of a joint operation between the Federal Police and the FBI. Authorities laid approximately 800 charges and seized $37.9 million in cryptocurrency, uncovering an international network that used the encrypted app AN0M for drug trafficking and money laundering.
