New York Man Faces Up to 20 Years in Prison for $1.2 Million Bitcoin Fraud
Date: 2025-07-02 Author: Henry Casey Categories: IN WORLD
The Federal Bureau of Investigation has charged Tushal Rathod of Baldwinsville with involvement in a fraudulent scheme that lasted from November 2021 to June 2024. According to investigators, he used counterfeit checks and access to business emails to illegally convert stolen funds into bitcoin.
The investigation revealed that Rathod operated seven bank accounts at six different financial institutions through which illegal transactions were conducted. According to the FBI, the amount withdrawn in cryptocurrency was at least $1.2 million. For example, in February 2023, two large transactions were made, during which more than 40 BTC were purchased for about $900,000.
Despite warnings from banks such as M&T and Citibank about the dubious origin of the funds, the suspect continued to provide fake invoices, creating the appearance of a legitimate business. One of the fake documents was found to be a victim of fraud. When asked for additional documentation, Rathod refused to cooperate with law enforcement.
The FBI also claims that his girlfriend and family members were involved in the criminal scheme, with over a million dollars deposited into their accounts. Of this, Citibank was able to return about $800,000. Charges against Rathod include conspiracy, wire fraud, money laundering, and engaging third parties in unlawful conduct.
Additionally, the case includes testimony from the defendant's former partner, who claims to have found suspicious screenshots of cryptocurrency transactions and correspondence in foreign languages. The case materials also contain complaints from Rathod about the mass closure of his bank accounts, recorded in Google records.
If found guilty, Rathod faces up to 20 years in prison, and the investigative authorities intend to confiscate his assets. This case has become another reminder of the growing problem of fraud in the cryptocurrency sector, which continues to attract the attention of law enforcement.
Earlier, a large-scale crypto fraud scheme was uncovered in Spain with losses of €460 million and thousands of victims, which confirms the importance of strengthening control over digital assets around the world.
