The United States Attorney’s Office for the District of Colorado has announced that Jonathan Arvay, a 38-year-old resident of Denver, has been sentenced to one year and one day in prison. This follows his conviction by a federal jury on charges of conducting an illegal gambling business and conspiracy related to such activities.
Evidence presented during the trial revealed that Arvay operated Player One Arcade in Denver. This establishment was part of a broader network of gambling parlors extending from Greeley to Pueblo. These parlors provided electronic gambling options through games designed to mimic arcade games and virtual slot machines. Customers would earn credits while playing these games, which could then be exchanged for a cryptocurrency called Obsidian Digital Asset Coin (ODAC). The ODAC could be converted into cash at nearby ATM-like machines, with customers incurring transaction fees for this exchange.
Acting United States Attorney Matt Kirsch commented on the case, stating, “This was a modern version of old-fashioned illegal gambling,” expressing gratitude towards local and federal partners involved in the investigation.
FBI Denver Special Agent in Charge Mark Michalek remarked on the outcome: “This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions.”
Tom Demeo, Acting Special Agent in Charge at IRS Criminal Investigation Denver Field Office, highlighted their commitment to tackling financial crimes: “IRS-CI remains on the cutting edge of cybercrime investigations as financial crimes continue to become more sophisticated. We are committed to staying one step ahead of criminals and leveraging our partnerships with federal and local law enforcement agencies to protect the U.S. tax system.”
The trial was overseen by United States District Judge Gordon P. Gallagher. The investigation was conducted by the FBI Denver Field Division, IRS Criminal Investigation Denver Field Office, and Pueblo Police Department. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler led the prosecution efforts.