Illegal Use of Relief Funds to Purchase Cryptocurrencies
In another scandal involving cryptocurrencies, a driver for a delivery service in Los Angeles is the focal point. According to authorities, the man is accused of fraud and money laundering: he allegedly illegally obtained about $2 million from government assistance funds intended to support businesses during the COVID-19 pandemic and used this money to purchase bitcoins.
During the investigation, law enforcement seized nearly 40 BTC purchased with the stolen funds. The delivery service driver, whose identity has not yet been disclosed, has been charged accordingly.
Unfortunately, such cases of misuse of funds allocated by the government to support businesses and the population in difficult times are still not uncommon. Malefactors try to find various ways to enrich themselves at the expense of this money, including by investing in cryptocurrencies. Regulators and law enforcement agencies have to closely monitor such fraud schemes in order to hold the perpetrators accountable and recover the stolen amounts.