A Los Angeles rideshare driver has been arrested on federal charges after allegedly obtaining more than $2 million in COVID-19 business relief loans through fraud and using the proceeds to purchase cryptocurrency. Bruce Choi, 34, was arrested Tuesday at San Francisco International Airport and charged with wire fraud and money laundering, according to the U.S. Attorney’s Office for the Central District of California.
The case adds to a growing list of pandemic relief fraud investigations involving cryptocurrency, highlighting how bad actors exploited emergency lending programs designed to help legitimate businesses survive lockdowns.
According to federal prosecutors, Choi submitted a fraudulent Economic Injury Disaster Loan application on behalf of a company called “Premier Republic.” Prosecutors say the business was entirely fictional as it had no actual operations and hired no employees.
Choi represented himself as the CEO and owner of Premier Republic, using false credentials to secure approximately $2 million in federal relief funds. Once the money hit his account, prosecutors allege he immediately wired the proceeds to Kraken, a major cryptocurrency exchange.
Federal agents seized nearly 40 bitcoin as part of the investigation, along with other cryptocurrencies that Choi allegedly purchased with the stolen funds.
Choi faces a five-count federal indictment. Each wire fraud count carries a maximum sentence of 30 years in prison, while the money laundering charge carries a maximum of 10 years.
If convicted on all counts, Choi could face decades in federal prison. The charges reflect how seriously federal prosecutors are treating pandemic relief fraud, particularly when cryptocurrency is involved.
This case is far from isolated. Federal agencies have been aggressively prosecuting fraud related to COVID-19 relief programs, which distributed billions in emergency funding during the pandemic.
In 2023, a TikTok influencer pleaded guilty to wire fraud charges after defrauding lenders and the U.S. government of $1.2 million in relief loans, with some proceeds laundered through cryptocurrency. Last year, the owner of a rural glass-fitting company in England was sentenced to two years in prison after securing more than $130,000 in loans and transferring roughly $10,000 to crypto investment companies.
The Small Business Administration and law enforcement agencies continue to review millions of applications from the pandemic relief programs to identify potentially fraudulent claims. Prosecutors have made it clear that using federal relief funds for personal gain (especially to purchase cryptocurrency) is a priority for enforcement.
Law enforcement has increasingly focused on cases where fraud proceeds are converted to digital assets. Cryptocurrency’s pseudonymous nature and the ability to move funds across borders quickly have made it an attractive vehicle for money laundering.
The seizure of Choi’s bitcoin (worth millions) shows that federal authorities have developed the technical expertise to track and recover cryptocurrency obtained through fraud.
Choi will face trial on the charges unless he enters into a plea agreement with prosecutors. The DOJ press release indicates the investigation is ongoing, suggesting authorities may uncover additional details about how the scheme operated.
The case serves as a reminder that pandemic relief fraud remains a top priority for federal law enforcement and that using cryptocurrency to hide illicit proceeds is not a viable strategy.
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