Payza Founder Gets 3.5 More Years for Hiding 450 Bitcoin

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US Judge Adds 3.5 Years to Payza Founder’s Sentence for Hiding 450 Bitcoin

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 07, 2025

Key Takeaways

Firoz Patel gets 3.5 more years in prison for trying to hide 450 BTC after his initial money laundering conviction;
Patel attempted to move Bitcoin through Binance and Blockchain.com, but both flagged and froze the funds;
Along with more prison time, Patel must forfeit $24 million and the 450 BTC frozen at Blockchain.com.

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US Judge Adds 3.5 Years to Payza Founder’s Sentence for Hiding 450 Bitcoin

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Firoz Patel, the founder of the crypto payments platform called Payza, has been sentenced to an additional three and a half years in US federal prison after attempting to conceal Bitcoin BTC $89,627.39 he was ordered to forfeit.

According to a February 6 statement, Patel first tried depositing it into Binance $3.65B , but his account was flagged and closed. He then created an account in his father’s name on Blockchain.com to transfer the funds, but that transaction was also blocked, and the Bitcoin was frozen.

Patel was sentenced in 2020 after pleading guilty to running an unlicensed money-transmitting business and laundering money. Prosecutors said his platform processed transactions without proper authorization and was used by fraudulent operations, including Ponzi and pyramid schemes.

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As part of his sentencing, Patel was required to forfeit any assets gained through Payza, but he claimed to have only $30,000 in a retirement account.

While serving his initial sentence, Patel learned that authorities were investigating the hidden Bitcoin. As his release date approached, he allegedly hired someone to impersonate a lawyer, hoping to delay prosecutors long enough to leave the US and avoid further charges.

However, investigators uncovered the scheme, which led to a new indictment before his scheduled release.

Washington, DC, judge Dabney Friedrich ruled that Patel had obstructed an official proceeding by trying to move 450 BTC linked to his business, despite already serving time for financial crimes.

The latest ruling adds another 41 months to Patel’s sentence. He will also be under supervised release for three more years and must forfeit over $24 million, along with the 450 BTC currently frozen at Blockchain.com.

Meanwhile, a US court recently issued a final ruling against the founders of EmpiresX, an illegal crypto investment platform. What was the verdict? Read the full story.