Crypto Fraudster Pleads Guilty in Major Bitcoin Laundering Case
Kunal Mehta pleaded guilty to a RICO conspiracy involving laundering over 4,100 stolen Bitcoin. At the time of the theft, the Bitcoin was valued at $263 million. Its value has since increased to over $384.5 million. Mehta used shell companies and associates to convert stolen Bitcoin into cash and luxury goods.
According to official court documents, he created multiple shell companies in 2024. These companies held fake bank accounts for laundering money. He transferred stolen cryptocurrency through these organizations to hide the origin of the funds.
Mehta’s Methods and Role in the Scheme
Mehta converted cryptocurrency to cash and distributed it to conspirators on request. He also helped buy high-value assets like luxury cars, private jets, and real estate rentals. Mehta charged a 10% fee for these services.
He joined the criminal group in early 2024 after being introduced by a money exchanger connected to a luxury car dealership in Los Angeles. The stolen Bitcoin came mostly from young conspirators aged 18 to 20 who could not explain their sudden wealth.
- The laundering involved shell companies to obscure the funds’ origins.
- Mehta titled luxury cars such as Lamborghinis and Ferraris to these companies.
- He hired straw signers for over $10,000 each to put their names on vehicle titles.
Law Enforcement and Legal Actions
The investigation was led by the U.S. Attorney’s Office for the District of Columbia, the FBI Washington Field Office, and the IRS Criminal Investigation unit. Additional support came from FBI offices in Los Angeles and Miami.
Assistant U.S. Attorney Kevin Rosenberg is prosecuting the case in Washington D.C. Authorities warn the public to verify any contact from individuals claiming to represent companies. They advise contacting companies directly through official customer service channels to avoid fraud.
