Key Takeaways:
Charles Uchenna Nwadavid pleaded guilty in Boston to mail fraud and money laundering. He laundered funds from six U.S. victims using cryptocurrency between 2016 and 2019. Transactions were processed through LocalBitcoins, accessed remotely by Nwadavid overseas.A Nigerian national pleaded guilty in Boston federal court on June 25 to charges related to laundering funds obtained through online romance fraud, according to a statement from the U.S. Attorney’s Office for the District of Massachusetts.
Charles Uchenna Nwadavid, 35, admitted to mail fraud and two counts of money laundering. Prosecutors said he controlled cryptocurrency accounts used to move victim funds and accessed them remotely from overseas. His sentencing is scheduled for September 23.
Romance Scam Money Laundering Network Tied to Crypto
According to court documents, the scheme ran from 2016 to 2019 and involved six U.S. victims. The individuals were recruited through social media and dating platforms and persuaded to send money under false pretenses, such as medical emergencies or legal fees.
Authorities said one Massachusetts victim unknowingly received funds from five others and then transferred the money to Nwadavid via cryptocurrency.
The transactions were processed through LocalBitcoins, an online peer-to-peer platform. Nwadavid allegedly directed the transfers while abroad using online access credentials.
He was indicted in January 2024 and arrested in April 2025 upon arrival at Dallas-Fort Worth International Airport from the United Kingdom.
Security Company Accused of Moving $123M via Crypto
Australian authorities recently charged four people in connection with an alleged A$190 million (~US$123 million) laundering scheme involving cryptocurrency and a Gold Coast security firm. The group moved illicit funds through courier services and converted them into crypto, blending them with legitimate business revenue.
The network used dead drops in multiple cities and air transport to move cash into Queensland. Some of the funds were funneled through a car dealership and a sales promotion company.
Authorities seized around A$21 million (~US$13 million) in assets, including 17 properties and several vehicles, and carried out 14 search warrants in Brisbane and the Gold Coast.
Law enforcement agencies are expanding cross-border coordination and blockchain surveillance to track crypto-linked fraud. Peer-to-peer platforms and foreign exchanges often limit recovery, especially when victims are used to move funds unknowingly.
Authorities warn that enforcement tools are still catching up. While blockchain data offers visibility, gaps in regulation and technical capacity continue to hinder timely intervention.
Frequently Asked Questions (FAQs)
Victims were recruited separately, but one was used to channel funds from others. This layering technique helped obscure the source and destination of the money.
He faces up to 20 years for each count, as well as fines, restitution, and deportation following any sentence.
Yes. Law enforcement has observed a growing trend of using cryptocurrency to launder proceeds from relationship-based fraud.
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