Key Insights:
- A Massachusetts man, Trung Nguyen was sentenced to six years in federal prison for operating an unlicensed cash-to-Bitcoin money laundering service.
- Nguyen’s “National Vending” business converted over $1 million for drug traffickers and “pig butcher” scammers between 2017 and 2020.
- He used a fake vending machine business and anti-surveillance training to hide his tracks until he was caught.
A Massachusetts man has been sentenced to six years in federal prison. This man, Trung Nguyen (aged 48), of Danvers was convicted of operating a covert cash-to-Bitcoin laundering service for drug traffickers and scammers.
Nguyen was found guilty of running an “unlicensed money transmitting business,” known as “National Vending.” According to reports, “National Vending” moved over $1 million from fiat into crypto over the course of three years. Here’s how it all played out.
A “No Questions Asked” Crypto Exchange
Nguyen’s business was built around the promise of secrecy. Prosecutors claim that between September 2017 and October 2020, he offered these secret services to clients who wanted to convert large amounts of cash into Bitcoin without raising suspicion.
Nguyen was said to have made no attempt to verify the source of the funds. As such, he became the “go-to guy” for drug dealers and pig butchers. Some of the transactions Nguyen performed were a series of deals with a self-proclaimed methamphetamine dealer.
This dealer handed over $250,000 in cash to Nguyen across ten different meetings.
Nguyen himself also received $445,000 from people who had been manipulated by international scammers into sending funds.
In exchange for his secrecy, Nguyen collected a commission of around 5% per transaction.
Prosecutors noted that he often met clients in person to pick up large sums of cash, which he sometimes delivered in duffel bags before quickly converting the money into Bitcoin.
Major Tactics to Conceal the Crime
To hide the true nature of his operation, Nguyen falsely claimed to operate a vending machine company.
He told banks and cryptocurrency exchanges that the cash deposits were legitimate business earnings, and even forged a supplier list to add authenticity to his story. His efforts to avoid being discovered were not only limited to clever lies.
Nguyen reportedly enrolled in an online course, designed to help individuals hide money laundering crimes. The course taught him to avoid terms like “Bitcoin,” to maintain a fictional business narrative, and never admit to transmitting funds on behalf of others.
He also started using anti-surveillance techniques by using encrypted messaging apps and breaking up large cash deposits into smaller amounts. These smaller deposits were spread across several days and bank branches to avoid triggering any alarms for transactions over $10,000.
Despite processing millions of dollars, Nguyen failed to register with the Financial Crimes Enforcement Network (FinCEN). He also failed to file mandatory Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs).
Undercover Operation Leads to Conviction
Nguyen’s downfall came after he was caught in a sting operation by undercover law enforcement officers, who posed as clients. During multiple meetings in 2018 and 2019, he accepted large sums of cash from the agents and converted them into Bitcoin, which allowed them to observe him doing the same things he had worked to keep hidden.
Eventually, he was arrested, and after a five-day trial in November 2024, a federal jury convicted Nguyen on two charges.
He was guilty of operating an unlicensed money-transmitting business, as well as money laundering.
He was acquitted on a second money laundering charge, and in May 2025, Judge Richard G. Stearns sentenced him to six years in prison, alongside three years of supervised release.
Nguyen was also ordered to forfeit $1.5 million in illicit gains.
Bitcoin Isn’t a Shield
After the sentencing, Acting U.S. Attorney Joshua Levy sent out a warning:
Nguyen’s conviction shows how big the crackdown on crypto-related crime has become.
While blockchain transactions can be anonymous at times, governments have become more adept at tracing them, especially when combined with regular investigative methods. Nguyen’s case is only the latest in the growing list of cases showing how crypto can be used to launder money. As crypto continues to mature, so too must the need to make sure that it is not weaponized for crime.
