Denish, Also Known As Danny Devan, A TikTok Influencer, Used BTC To Illegally Launder Money From The COVID Relief Fund

9 thg 6, 202315:40 UTC

Denish Sahadevan, a 31-year-old social media influencer known as Danny Devan, has pleaded guilty to a series of criminal charges related to money laundering using cryptocurrency. The US Department of Justice (DoJ) revealed that Sahadevan fraudulently obtained over $1.2 million in government relief loans, primarily through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

Sahadevan's illicit activities involved creating fake tax forms and bank statements to apply for loans under various Maryland-based entities. He also used another person's information without consent to bolster his fraudulent activities. In total, he applied for around 71 PPP loans, potentially amounting to $941,000, and successfully obtained $146,000 in PPP benefits along with $238,000 through 8 EIDLs.

To conceal the origins of the ill-gotten funds, Sahadevan turned to securities and cryptocurrency trading. He attempted to settle personal debts and transferred funds to his girlfriend. However, law enforcement authorities intervened when they executed a search warrant at Sahadevan's residence, leading to the seizure of significant evidence, including multiple driver's licenses and a physical Bitcoin , assumed to hold the private keys.

The maximum federal prison sentence for wire fraud is 20 years, the maximum sentence for money laundering is 10 years, and the mandatory sentence for aggravated identity theft is two years. Sahadevan is currently awaiting sentencing. In addition, he must pay $429,000 in restitution and forfeit his cash and Bitcoin holdings.

This case serves as a stark reminder of the importance of adhering to ethical and legal practices within the cryptocurrency landscape. Sahadevan's actions underscore the need for robust compliance measures to prevent fraudulent activities, especially concerning government relief programs. The DoJ's successful prosecution sends a clear message that such illicit behavior will not be tolerated, aiming to deter individuals from engaging in similar activities and maintain the integrity of financial systems.