Monday, October 16, 2023 10:06PM
SUGAR LAND, Texas (KTRK) — A 37-year-old man admitted to his position in a half-a-million-dollar cryptocurrency rip-off, in accordance to the US Legal professional’s Workplace.
Xiaofei Chen pleaded guilty to aggravated identity theft in a fraud scheme the place greater than $500,000 was laundered.
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Chen was arrested after being charged in December 2022 with a number of counts of wire fraud, cash laundering, partaking in financial transactions in property derived from specified illegal exercise, and aggravated identity theft.
Every depend of aggravated identity theft carries a compulsory two years, which should be served consecutively to every other sentence imposed, in accordance to the U.S. Legal professional’s Workplace.
A ten-count indictment launched in November 2022 acknowledged Chen used the stolen cash to fund his way of life and luxurious purchases, together with two brand-new automobiles.
Officers mentioned Chen admitted to wiring $520,000 from the sufferer’s checking account.
The U.S. Legal professional’s Workplace mentioned Chen used the sufferer’s identify and driver’s license and opened a Bitstamp cryptocurrency alternate account.
Chen used Bitstamp and different cryptocurrency accounts to convert the stolen cash into Bitcoin earlier than shifting it throughout a number of exchanges to conceal his scheme.
Prosecutors mentioned Chen additionally used the sufferer’s identity to entry and open accounts.
Chen was sentenced to a compulsory two years in jail, set to start on Jan. 18, 2024.
Chen was permitted to stay on bond pending that listening to.
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