Prosecutors in the United States have reportedly detained three individuals, Zhong Shi Gao, Naifeng Xu, and Feo Jiang, on suspicion that they stole $10 million from financial institutions and used cryptocurrency exchanges to launder the funds, as reported by CryptoPotato. Each defendant, if proven guilty, could potentially spend more than eighty years in prison.

The arrests were announced by the U.S. Attorney's Office for the Southern District of New York, which stated that the suspects were participants in a complex fraud scheme that targeted U.S. banks and financial institutions. Reportedly, Chinese and Taiwanese nationals residing temporarily in the United States were employed by Gao, Xu, and Jiang to establish bank accounts in the New York City metropolitan area and other locations. The banks credited the accounts of the three men after they reported unauthorised wire transfers and proceeded to transfer and deposit funds between the accounts.

The suspects either withdrew the credited funds or converted them to cryptocurrency before transferring them to foreign exchanges prior to the banks becoming cognizant of the fraudulent and unauthorised reports. The fraudulent operations transpired from 2018 to 2022, during which time the con artists amassed in excess of $10 million through their illicit endeavours. Nearly a dozen banks and financial institutions were impacted by the theft.

One count of bank fraud conspiracy, one count of conspiracy to commit wire fraud affecting a financial institution, one count of conspiracy to launder money, and one count of aggravated identity theft are each levied against Gao, Xu, and Jiang. The initial two charges are each subject to a maximum prison term of thirty years. In contrast, the third and fourth charges entail potential imprisonment terms of twenty years and two years, respectively. The charges should serve as a deterrent to fraudsters and cybercriminals who believe they can conceal their identities with cryptocurrencies, according to U.S. Attorney Damian Williams, who added that those responsible will be apprehended and held accountable for their exploits.

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