Los Angeles Rideshare Driver Accused of Scamming Over $2 Million in COVID Relief Loans to Buy Cryptocurrency

BlockBeats News, March 19th, according to Decrypt, a ride-hailing driver in Los Angeles, USA, was arrested at San Francisco International Airport on Tuesday for allegedly defrauding over $2 million in COVID-19 relief funds and using the money to purchase cryptocurrency. He faces federal charges of wire fraud and money laundering.

According to the charges disclosed by the U.S. Attorney's Office for the Central District of California, 34-year-old Los Angeles Koreatown resident Bruce Choi, posing as the CEO and owner of the fictitious company "Premier Republic," submitted fraudulent Economic Injury Disaster Loan applications to the authorities, successfully obtaining about $2 million in relief funds. Prosecutors noted that Premier Republic "had neither actual business operations nor any employees."

Choi then transferred the obtained funds to the cryptocurrency exchange Kraken to purchase cryptocurrency. Federal prosecutors seized nearly 40 BTC and other cryptocurrencies during the investigation. In terms of sentencing, if convicted, Choi could face up to 30 years in prison for each wire fraud charge and up to 10 years for money laundering.