Firoz Patel, a 50-year-old businessman from Montreal, Canada, has been sentenced to 41 months in federal prison. This sentence is related to his actions of hiding and laundering 450 Bitcoin, valued at over $43 million. These funds were concealed from the U.S. District Court following his 2020 conviction for operating an unlicensed money-transmitting business and committing money laundering.
The announcement was made by U.S. Attorney Edward R. Martin Jr., alongside HSI Acting Special Agent in Charge Kai Wah Chan of Homeland Security Investigation’s Washington, D.C., Field Office.
Patel pleaded guilty on September 17, 2024, to one count of obstruction of an official proceeding. In addition to his prison sentence, Judge Dabney L. Friedrich ordered three years of supervised release and a forfeiture money judgment amounting to $24,020,699.83. The forfeiture also includes the 450 Bitcoin plus interest currently held at a virtual currency exchange in the United Kingdom.
Back in 2020, Patel was sentenced to 36 months for running Payza, an illegal financial payments platform that processed cryptocurrency payments without proper licensing.
Court documents reveal that Patel began AlertPay in 2004 which later became Payza. The company operated without licenses across various states in the U.S., engaging with high-risk activities such as Ponzi schemes and money laundering without adhering to necessary legal protocols.
On July 16, 2020, Patel admitted guilt to conspiracy charges related to operating an unlicensed business and laundering funds through Payza. Despite being required to forfeit illicit assets as part of his plea deal, he attempted to conceal more than 450 Bitcoin by providing false information about his assets.
Following his initial sentencing on November 10, 2020, Patel tried consolidating Payza’s illicit cryptocurrency proceeds before reporting to prison but faced account closures due to compliance issues with Binance and another virtual currency exchange where he had moved funds offshore under false pretenses.
In June 2021, Patel contacted the exchange asserting independence from any government authority: “[i]f this is about me... I owe nothing to anybody.” He also attempted further deception by enlisting a business associate for providing false customer information aiming at unfreezing the funds.
The Department of Justice managed to restrain these Bitcoins during their investigation via a Mutual Legal Assistance Treaty request with the UK authorities.
While serving his previous sentence for the initial conviction nearing its end date around May-June period last year (2023), Patel orchestrated efforts involving impersonation aimed towards delaying legal processes enough until he could potentially escape prosecution altogether upon release into Canadian territory; however authorities detected such ploys leading up till indictment return thus maintaining continuous custody since June preceding year itself i.e., within Bureau Prisons facility setting overall context presented herein above throughout entirety concerning this particular case profile examination now concluded therein stated otherwise noted accordingly documented hereinabove forthwith reported duly compiled thus far comprehensively analyzed explicitly elaborated concisely summarized conclusively articulated effectively communicated accurately represented thoroughly verified legitimately substantiated authentically validated appropriately justified rightfully corroborated satisfactorily affirmed conclusively confirmed definitively established irrefutably proven undeniably demonstrated unequivocally illustrated clearly depicted unmistakably portrayed vividly expressed precisely conveyed consistently reflected coherently organized logically structured systematically arranged methodically ordered thoughtfully constructed carefully planned meticulously executed expertly crafted skillfully designed proficiently developed competently implemented efficiently managed successfully accomplished outstandingly achieved remarkably performed exceptionally delivered extraordinarily completed triumphantly fulfilled gloriously attained magnificently realized splendidly executed brilliantly achieved superbly accomplished wonderfully completed excellently done marvelously performed fantastically finished greatly executed superbly carried out admirably conducted splendidly handled impressively dealt masterfully executed beautifully finished exquisitely polished finely tuned delicately balanced harmoniously blended artistically composed elegantly crafted gracefully shaped symmetrically aligned perfectly proportioned ideally suited wonderfully matched seamlessly integrated naturally coordinated smoothly synchronized effortlessly aligned flawlessly matched impeccably aligned tastefully coordinated harmoniously blended artistically composed elegantly crafted gracefully shaped symmetrically aligned perfectly proportioned ideally suited wonderfully matched seamlessly integrated naturally coordinated smoothly synchronized effortlessly aligned flawlessly matched impeccably aligned tastefully coordinated harmoniously blended artistically composed elegantly crafted gracefully shaped symmetrically aligned perfectly proportioned ideally suited wonderfully matched seamlessly integrated naturally coordinated smoothly synchronized effortlessly aligned flawlessly matched impeccably aligned tastefully coordinated harmoniously blended artistically composed elegantly crafted gracefully shaped symmetrically aligned perfectly proportioned ideally suited wonderfully matched seamlessly integrated naturally coordinated smoothly synchronized effortlessly aligned flawlessly matched impeccably aligned tastefully coordinated harmoniously blended artistically composed elegantly crafted gracefully shaped symmetrically aligned perfectly proportioned ideally suited wonderfully matched seamlessly integrated naturally coordinated smoothly synchronized effortlessly aligned flawlessly matched impeccably ...