SUGAR LAND, Texas – A Sugar Land man has pleaded guilty to aggravated identity theft in connection with a scheme to fraudulently obtain and launder more than $500,000, the United States Department of Justice announced.
Xiaofei Chen, 37, reportedly admitted to arranging a fraudulent wire of $520,000 from the victim’s checking account. Chen opened a Bitstamp cryptocurrency exchange account using the victim’s name and driver’s license without the victim’s consent, U.S. Attorney Alamdar S. Hamdani said.
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“Chen used the Bitstamp account and other cryptocurrency accounts to convert the proceeds into Bitcoin and laundered the Bitcoin through numerous transactions,” a news release from the DOJ said.
U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for Jan. 18, 2024. At that time, Chen faces a mandatory of two years in prison.
Chen was permitted to remain on bond pending that hearing.
FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek are prosecuting the case.