US Charges Two in $389M Crypto Laundering Case

Federal prosecutors charged two individuals with laundering more than $389 million in cryptocurrency, one of the larger digital-asset money laundering cases to surface this year. The indictment, unsealed in June 2025, alleges the defendants used a network of shell companies and crypto exchanges to move proceeds from investment fraud and ransomware attacks.

The Department of Justice also filed a civil forfeiture action targeting roughly $225.3 million in USDT linked to the same scheme. That move showed prosecutors are treating stablecoin proceeds with the same intensity they apply to fiat currency cases, according to a former federal prosecutor familiar with the investigation.

The FBI has been tracking the broader trend. Bureau data from 2025 recorded $389 million in reported losses from crypto ATM and kiosk fraud, a 58% jump from the prior year. The figure came from 13,460 individual complaints, with victims aged 60 and older accounting for the largest share of losses.

Canada responded in April 2026 by announcing a ban on crypto ATMs, citing their persistent links to scams and money laundering. Bitcoin Depot, one of the largest crypto ATM operators in the U.S., filed for Chapter 11 bankruptcy protection in May 2026, blaming business pressures and rising compliance costs.

The case adds to a string of federal actions targeting illicit crypto flows. The defendants face charges of money laundering conspiracy and operating an unlicensed money transmitting business.