- Key insight: Kunal Mehta established shell companies and charged a 10% fee to convert stolen cryptocurrency into fiat cash.
- Supporting data: In addition to wire transfers, Mehta provided bulk cash services, once personally delivering a duffel bag containing approximately $500,000 to a co-conspirator.
- Expert quote: "We are committed to rooting out fraud and holding those responsible fully accountable," said U.S. Attorney Jeanine Pirro regarding the plea.
- What's at stake: Mehta faces a maximum penalty of 20 years in prison and significant fines for a conspiracy charge, alongside the forfeiture of assets.
Overview bullets generated by AI with editorial review
Kunal Mehta, 45, of Irvine, California, pleaded guilty on Tuesday for his central role as a money launderer in a criminal enterprise that stole hundreds of millions of dollars in virtual currency from victims across the United States.
Mehta, also known by the aliases "Papa," "The Accountant," and "Shrek," is the eighth person to plead guilty in connection with the sophisticated scheme. He pleaded guilty to participating in a criminal conspiracy and admitted to helping the group launder at least $25 million.
The case highlights how criminals exploit the traditional financial system using cryptocurrency and shell corporations to mask illicit proceeds.
Mehta's primary function was transforming stolen cryptocurrency into seemingly legitimate fiat cash. He joined the enterprise in early 2024 as a money launderer and fixer. According to court documents, he charged a 10% fee for converting cryptocurrency to fiat cash.
To facilitate this laundering, Mehta established multiple shell companies in 2024 and created associated bank accounts to provide "the appearance of legitimacy," according to a Tuesday press release from the U.S. Attorney's Office for the District of Columbia.
Court records indicate Mehta had bank accounts with JPMorganChase, which the bank closed earlier this year on suspicion of money laundering. The bank closed the accounts prior to prosecutor intervention. Prosecutors did not detail the exact role these accounts played in the criminal enterprise.
A critical component of the scheme involved disguising the origin of large wire transfers. Mehta worked with Chinese nationals who received stolen cryptocurrency, laundered it through sophisticated blockchain techniques and then transferred laundered fiat currency back into Mehta's shell company accounts via wire transfers.
According to prosecutors, Mehta instructed a co-conspirator to send the cryptocurrency Monero to another co-conspirator who would then convert it into stablecoin Tether before sending it to Mehta. Monero is known as a privacy coin designed to grant anonymity to users by obfuscating transactions.
Members of the broader enterprise also allegedly transferred portions of stolen currency through so-called mixers, peel chains and pass-through wallet addresses — all techniques designed to hide the movement and ownership of funds. The group also used virtual currency exchanges such as Thorswap or eXch that notoriously require little identifying information from users, according to prosecutors.
Mehta also engaged with more traditional money laundering techniques. His company bank records, including for "Code Ninja LLC," showed incoming wire transfers accompanied by fictitious descriptions, according to prosecutors.
For instance, U.S. Attorney for the District of Columbia Jeanine Pirro noted that a review of Mehta's company records showed transactions in July 2024 where his company received a combined $310,000 over a three-day period under the description "family support," according to a May court filing.
Mehta also promised a co-conspirator he would use wire transfers to funnel funds to the co-conspirator's mother. He told the co-conspirator that he could insulate them from federal investigators by using the transaction description "family support" since it is not taxable and would appear legitimate coming from his company, according to the May court filing.
In addition to wire transfers, Mehta provided bulk cash services, including once personally delivering a duffel bag containing approximately $500,000 in U.S. currency to a co-conspirator and associates, according to an indictment.
Scope of the criminal enterprise
The criminal organization of which Mehta was a part, which prosecutors referred to as the "Social Engineering Enterprise," operated from before October 2023 through at least March of this year. The enterprise used social engineering, which involves manipulating individuals to gain access to private data or to steal funds.
Members of the enterprise served various roles, including database hackers, target identifiers, callers, money launderers and even residential burglars targeting hardware virtual currency wallets.
The group stole hundreds of millions of dollars in cryptocurrency. For instance, prosecutors alleged that in one incident alone, in August 2024, a co-conspirator fraudulently obtained over 4,100 bitcoin, which was valued at $263 million at the time and $385 million as of time of publication.
Mehta's role also extended beyond simple transactions. He assisted the group in laundering stolen virtual currency to fund lavish spending, including the purchase of exotic cars.
Furthermore, prosecutors alleged he assisted co-conspirators in obtaining firearms for protection against rival cybercrime groups. During a search warrant of his home, authorities seized three pistols and a shotgun, along with $300,000 in fiat cash, according to a May court filing.
Punishment and accountability
Mehta is currently detained pending sentencing, having been arrested in May. He has agreed to forfeit property and proceeds related to his money laundering, including funds previously held in his companies' bank accounts and cryptocurrency wallets.
The RICO conspiracy charge carries a maximum sentence of 20 years imprisonment and a potential fine of up to twice the pecuniary (monetary) gain of the offense.
Pirro affirmed the commitment to combating this type of crime in
"We are committed to rooting out fraud and holding those responsible fully accountable," she said.
FBI special agent in charge Reid Davis said in the press release that the plea "reaffirms the FBI's commitment to exposing fraudsters."
