Khuu was previously indicated in a Tyler courtroom on May 18, 2022, charged with conspiracy to commit money laundering.
TYLER, Texas — A California man has been sentenced for his role in a cryptocurrency money laundering scheme after his 2022 indictment in Tyler.
According to the United States Attorney’s Office, John Khuu, 29, of San Francisco pleaded guilty to commit money laundering and conspiracy to operate an unlicensed money transmitting business. He was sentenced to 87 months in federal prison on Wednesday.
Davilyn Walston, the public affairs officer for the U.S Attorney’s Office Eastern District of Texas, said Khuu pleaded guilty in Tyler on May 18, 2022, charged with conspiracy to commit money laundering. On Aug. 17, 2022, Khu was indicted in California and charged with unlawful importation of a Schedule I controlled substance. Khuu was arrested in Garden Grove, California on Aug. 19, 2022.
Khu reportedly imported counterfeit ecstacy pills from Germany and distributed them to customers across the United States over the internet. Customers paid for these purchases through cryptocurrency, primarily Bitcoin to Khuu’s vendor account.
Khuu and co-conspirators then traded Bitcoin for U.S currency, laundering and transmitting the money through hundreds of transactions and dozens of financial accounts.
