A man from Baldwinsville, New York, has been accused of using fake checks and email scams to collect nearly $1.7 million, most of which was converted into Bitcoin
$105,705.69
.
According to court documents, the FBI explained that Tushal Rathod carried out this scheme between November 2021 and June 2024.
The case centers on a type of scam known as business email compromise. This involves tricking companies into sending payments to the wrong accounts by stealing email login information and watching for upcoming transactions.
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Rathod is reported to have used this method while operating several business bank accounts to receive and move the stolen money.
Seven bank accounts across six different banks were used. Records indicated that around $1.2 million was converted into Bitcoin and sent to unknown addresses.
At least three of the banks warned Rathod that the deposits looked suspicious. In response, he provided an invoice to explain the money, but it turned out to be fake. One bank showed this invoice to a victim, who confirmed it was not real.
The FBI also said Rathod allegedly involved his girlfriend and family members by transferring funds through their accounts. Over $1 million passed through their hands, though Citibank was able to recover $800,000 of that amount.
Rathod faces several charges, including wire fraud and money laundering. If convicted, he could spend up to 20 years in prison.
Recently, US prosecutors have charged four North Korean citizens with wire fraud and money laundering. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
