Canadian businessman Firoz Patel sentenced to 41 months in U.S. federal jail for obstruction after concealing 450 bitcoins from the court docket. Authorities uncovered his makes an attempt to cover belongings and impersonate an lawyer to evade prosecution.
A Canadian businessman, Firoz Patel, has been sentenced to 41 months in U.S. federal jail after pleading responsible to obstruction of an official continuing. The sentencing was introduced on Feb. 6 by U.S. Legal professional Edward R. Martin Jr. and appearing Particular Agent in Cost Kai Wah Chan of Homeland Safety Investigations.
Bitcoin Holdings Hidden from Court docket by Canadian Businessman
Patel’s conviction stems from his failure to reveal 450 bitcoins throughout a 2020 trial associated to his operation of Payza, an unlicensed cryptocurrency fee processing platform. He had beforehand been sentenced to 36 months in jail for Payza’s position in processing illicit transactions.
As a part of his sentencing, Patel was ordered to forfeit any property linked to the offense. As an alternative, he tried to consolidate his bitcoin holdings and switch them to Binance. When the trade blocked his account for violating its phrases of service, Patel withdrew the funds and moved them to a different platform.
Makes an attempt to Conceal Belongings and Evade Authorities
Shortly earlier than reporting to jail in April 2021, Patel deposited the bitcoins with an unnamed cryptocurrency trade. When the platform froze his account, Patel tried to regain entry by offering false Know Your Buyer (KYC) info and arguing for the funds’ launch.
Patel reportedly instructed the trade, “If that is about me, then understand that I’m not beholden to any actions by the USA or every other authorities authorities. I’ve paid my dues and I owe nothing to anyone.”
After authorities found his efforts to cover belongings, Patel and an confederate devised a plan to impersonate an lawyer and have interaction in faux negotiations with the U.S. Legal professional’s Workplace. Their objective was to delay authorized motion till Patel’s launch, after which he meant to flee to Canada. Nevertheless, the scheme was uncovered, and Patel was indicted in Could 2023.
Authorized Penalties and Ongoing Enforcement
Patel has been in custody since June 2021. Along with his new jail time period, he has agreed to forfeit all illicitly obtained belongings. U.S. officers proceed to analyze monetary crimes involving cryptocurrency to make sure compliance with federal laws.
For extra updates on monetary crime enforcement, comply with official statements from the U.S. Division of Justice and Homeland Safety Investigations.
