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Crypto Money Launderer Kunal Mehta Pleads Guilty in $263 Million Social-Engineering Case

The plea makes him the eighth defendant to admit guilt in a DOJ probe of a youth-driven ring that converted stolen crypto into luxury assets.

Overview

  • Mehta, 45, admitted to a RICO conspiracy and to laundering at least $25 million, charging a 10% fee to convert cryptocurrency into cash and wires.
  • Prosecutors say he formed shell companies, used false wire descriptions, arranged straw signers, titled luxury cars to conceal ownership, and once delivered about $500,000 in cash.
  • Court filings describe a multi-state enterprise that grew from online gaming friendships and assigned roles including hackers, callers, launderers, and residential burglars.
  • The scheme includes the Aug. 18, 2024 theft of more than 4,100 Bitcoin from a Washington, D.C., victim, valued at $263 million then and about $384.5 million this week.
  • Authorities say Mehta is detained pending sentencing, has agreed to forfeit assets, and is one of multiple defendants being prosecuted by the U.S. Attorney’s Office with the FBI and IRS-CI.