A man from central New York is facing federal charges after allegedly converting nearly $2 million in fraudulent funds into Bitcoin.
According to court documents filed in Rhode Island, Tushal Rathod has been indicted on counts of wire fraud, money laundering, and conspiracy to commit money laundering.
The FBI claims Rathod played a key role in a business email compromise (BEC) scheme that operated from 2022 to 2024. These scams typically involve hackers stealing email credentials through targeted phishing campaigns and then posing as trusted parties to divert or intercept large financial transfers. Rathod allegedly funneled the stolen funds through seven accounts at six banks before moving much of it into Bitcoin.
The affidavit by FBI Special Agent Samuel Morgan outlines how Rathod used multiple aliases and coordinated with a broader group of co-conspirators to obscure the illicit origins of the funds. These tactics, according to Morgan, are standard in large-scale fraud operations, where layers of laundering are used to make criminal proceeds appear legitimate.
Authorities believe Rathod’s use of cryptocurrency was a deliberate attempt to avoid detection and obscure money trails. Bitcoin’s pseudonymous nature continues to make it attractive to fraudsters looking to move large sums discreetly, despite growing law enforcement capabilities in blockchain forensics.
Rathod was arrested and arraigned last Wednesday. He is currently in custody awaiting a detention hearing. Prosecutors have not yet disclosed whether additional arrests in the conspiracy are expected.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/american-charged-for-laundering-1-7m-in-fraudulent-checks-into-bitcoin/