A rideshare driver in Los Angeles has been charged by federal authorities after he allegedly obtained more than $2 million in pandemic relief funds and used a portion of the money to purchase cryptocurrencies, including Bitcoin.
According to the U.S. Department of Justice, the suspect, identified as 34-year-old Bruce Choi, was arrested following an investigation into fraudulent loan applications tied to COVID-19 relief programs.
Details of the Alleged Scam
Prosecutors allege that Choi submitted multiple loan applications under programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), claiming to operate businesses that did not exist.
To support these claims, investigators claimed he provided falsified tax returns, fabricated payroll figures, and fake bank statements. In one instance, he reportedly claimed millions in revenue and hundreds of thousands in payroll for a company that had no employees or operations.
As a result of the scheme, authorities say he received nearly $2 million in loan funds, along with an additional $10,000 advance. After receiving the funds, Choi allegedly transferred part of the proceeds into cryptocurrency accounts, including transactions linked to the Kraken exchange.
Federal authorities have since seized nearly 40 Bitcoins and other digital assets as part of the ongoing investigation. The case highlights how crypto continues to appear in financial crime investigations, particularly as digital assets offer fast and borderless ways to move funds.
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Charges and Potential Implications
Choi faces multiple charges, including wire fraud and transactional money laundering, according to federal prosecutors. If convicted, he could face up to 30 years in prison per fraud count. The money laundering charge could earn him an additional 10 years.
However, authorities emphasized that the charges remain allegations, and the defendant is presumed innocent unless proven guilty in court.
The case underscores the increasing intersection between traditional financial fraud and digital assets. Crypto prices surged massively in 2020/2021 at the height of the pandemic. The Bitcoin price doubled by December. Ethereum has also surged about 400% in the same period. This profitability attracted investments from a diverse audience, especially from fraudsters looking to invest proceeds.
While cryptocurrencies like Bitcoin are often promoted for their transparency, their use in illicit schemes continues to draw scrutiny from regulators and law enforcement agencies. As enforcement efforts expand, cases like this may shape how governments monitor and regulate the digital assets.
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Evans Kelvin
Temitope Olajide
