Alan Joseph, 36, was convicted of one count of operating an unlicensed money transmitting business and three counts of money laundering. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for 24 February, 2025. Joseph was charged by criminal complaint and arrested in February 2021 and later indicted by a federal grand jury in March 2021.

Between August 2020 and February 2021, Joseph engaged in at least four financial transactions where he converted cash to Bitcoin in connection with what Joseph believed to be trafficking in counterfeit goods, which is illegal under federal law.

Joseph sought to promote and conceal the nature of such illegal activity. For instance, on 28 October, 2020, Joseph converted about USD25,000 in cash to Bitcoin for an undercover agent. During this meeting, the undercover agent represented to Joseph that the money Joseph was converting was from “rich housewives” who purchased “fake” items. Additionally, Joseph expressed an interest in purchasing counterfeit goods from the undercover agent.

Contrary to federal law and regulations, Joseph never registered his money transmission business with the Department of Treasury, nor did he ever request identification from the undercover agent during the meetings.