ChainThink report, on March 19, a rideshare driver in Los Angeles was arrested at San Francisco International Airport on Tuesday, facing federal charges of wire fraud and money laundering after allegedly defrauding over $2 million in pandemic-related business relief loans and using the funds to purchase cryptocurrencies.

According to charges disclosed by the U.S. Attorney’s Office for the Central District of California, 34-year-old Bruce Choi, a resident of Koreatown in Los Angeles, submitted fraudulent Economic Injury Disaster Loan (EIDL) applications under the guise of being the CEO and sole owner of a fictitious company named "Premier Republic," successfully obtaining approximately $2 million in relief funds. Prosecutors emphasized that Premier Republic "had no actual business operations and did not employ any individuals."

Choi subsequently transferred the illicit funds to an account on the cryptocurrency exchange Kraken to purchase digital assets. Federal prosecutors seized nearly 40 BTC and other cryptocurrencies during the investigation. If convicted, Choi faces a maximum penalty of 30 years in prison for each wire fraud charge and up to 10 years for money laundering charges.