Montreal businessman Firoz Patel, age 50, has been sentenced to 41 months in federal prison for obstructing justice by concealing and laundering Bitcoin valued at over $43 million. This sentence follows his previous 2020 conviction for operating an unlicensed money-transmitting business and committing money laundering through his payment processing company, Payza. The latest development in Patel's legal saga was announced by U.S. Attorney Edward R. Martin, Jr., with Homeland Security Investigation's Washington, D.C. Field Office playing a key role in the investigation.
After his 2020 conviction, Patel was supposed to forfeit any assets linked to his crimes but instead chose to hide his cryptocurrency fortune. By September 17, 2024, he pleaded guilty to one count of obstruction, leading to the current sentence that also includes three years of supervised release and a forfeiture of the laundered Bitcoin. According to court documents, Patel's deception extended to providing false information to authorities, going as far as claiming his only assets amounted to $30,000 in a retirement savings account.
Patel's underhanded tactics didn't end there. Before serving his previous sentence, he attempted to move the illicit Bitcoin to Binance, but when this exchange closed his account due to suspicious activity, Patel opened another account in his father's name with an offshore virtual currency exchange. Once again, his activities raised red flags, and the exchange froze the funds. As per the Department of Justice, Patel brazenly contacted the exchange and engaged in a bid to provide false information to regain access to Bitcoin.
The ruse came to a head when Patel, nearing his release from the Bureau of Prisons, enlisted someone to impersonate an attorney to deceive the U.S. Attorney's Office, with the intent to quickly flee the United States post-release. Investigators uncovered the scheme before Patel could enact his plan. His strategies have ultimately led to an extended stay in federal custody, with Homeland Security Investigations and several divisions of the Department of Justice collaborating to ensure his prosecution.\
