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Canadian Crypto Founder gets more Jail for Hiding 450 BTC

by Abimbola Adu
Feb 7, 2025 - 5:16 pm
in Bitcoin
Canadian crypto founder Firoz Patel sentenced in US court for concealing 450 Bitcoin after his money laundering conviction.

Sandi Bitget Crypto App Founder Sentenced Again Firoz Patel – founder of crypto payments app Payza, has been sentenced for another 41 months in jail after trying to hide 450 Bitcoin from United States authorities, reports said. The sentence announced by the Department of Justice on Feb 6, adds to his prior conviction back in 2020 related to money-laundering and operation of an unlicensed money-transmitting business.

Payza’s History of Legal Trouble: Patel co-founded the site with his brother Ferhan to process cryptocurrency-based online payments. But United States prosecutors found that the website processed more than $250 million in transactions for money launderers, Ponzi schemes, and other fraudsters.

In 2020, Patel pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and laundering money. He received a three-year prison sentence with two years of supervised release. He was ordered to forfeit all proceeds of the Payza scheme as part of his sentencing but initially reported having only $30,000 in a retirement account.

Attempting to Conceal Bitcoin

Instead of complying with the forfeiture order, Patel surreptitiously gathered 450 BTC, worth about $43.5 million today, and tried to move the money through different crypto exchanges. First, he tried to deposit the Bitcoin into Binance, but the exchange flagged and then closed his account in April 2021.

He then attempted to transfer the Bitcoin to account in his father’s name. After the platform froze the funds, Patel instructed a business associate to provide fake identification to unfreeze them.

Failed Escape Plan and New Charges

While serving his initial sentence, Patel learned that the government had discovered his hidden Bitcoin. He created a fake attorney to deceive prosecutors in hopes of delaying further charges beyond his release date so he could flee the country. But law enforcement caught on to the scheme and indicted him before a release date could be reached.

Final Sentencing and Asset Forfeiture

Judge Dabney Friedrich sentenced Patel to another three and a half years in prison, three years of supervised release, and the forfeiture of over $24 million, along with the 450 BTC

Patel’s case is yet another example of the US government’s ongoing crackdown on crypto-related financial crimes and its increasing scrutiny of digital assets used for illegal activities.

Tags: BitcoinDeFiRegulation
Abimbola Adu

Abimbola Adu

Abimbola Adu is a crypto content writer with a background in English studies. She is keen on enlightening others about cryptocurrency and blockchains. She enjoys writing poems and spending time with family.

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