According to Decrypt, the U.S. Attorney’s Office for the Central District of California announced that Bruce Choi, a 34-year-old rideshare driver from Koreatown, Los Angeles, was arrested on Tuesday at San Francisco International Airport on federal charges of wire fraud and money laundering. Prosecutors allege that Choi submitted fraudulent Economic Injury Disaster Loan applications to the U.S. Small Business Administration, posing as the owner of a fictitious company called "Premier Republic," to obtain over $2 million in COVID-19 business relief funds, which he then transferred to his Kraken cryptocurrency exchange account to purchase digital assets. Federal authorities have seized nearly 40 BTC and other cryptocurrencies. Wire fraud carries a maximum penalty of 30 years in prison per count, while money laundering carries a maximum penalty of 10 years in prison.
LA Uber driver faces federal charges for fraudulently obtaining $2 million in pandemic loans to buy cryptocurrency
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Summary
An Uber driver from Los Angeles faces federal charges for defrauding the SBA of over $2 million in pandemic relief funds, which he allegedly used to purchase cryptocurrency. Bruce Choi, 34, operated under the fictitious company "Premier Republic" and had the funds directed to his Kraken account. Authorities seized nearly 40 BTC. Wire fraud carries a maximum penalty of 30 years in prison, while money laundering could add another 10 years. The case underscores ongoing risks to liquidity and crypto markets. As MiCA (EU Markets in Crypto-Assets Regulation) nears implementation, global scrutiny of crypto transactions is intensifying.
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