Kunal Mehta, a 45‑year‑old California resident known by aliases including “Shrek,” “Papa,” and “The Accountant,” has pleaded guilty to participating in a criminal ring that stole and laundered hundreds of millions of dollars in crypto in the United States.
Mehta’s plea was entered before US District Court Judge Colleen Kollar‑Kotelly in Washington, alongside FBI Special Agent Reid Davis and Executive Special Agent Kareem Carter of the Internal Revenue Service’s Criminal Investigation (CI) unit.
According to a press statement released on Tuesday by the District of Columbia’s Justice Department, Shrek admitted to a RICO conspiracy charge, in which he helped wash at least $25 million in crypto for the group. Federal prosecutors say the total value of stolen crypto tied to the scheme exceeds $263 million, based on one major theft alone.
US prosecutors win case against Kunal ‘Shrek’ Mehta
US Attorney Matthew M. Graves said the conspirators stole huge amounts of crypto before funneling the funds through layers of transactions to hide their origin, then spending the proceeds on personal luxuries.
FBI Special Agent in Charge Reid Davis called Mehta the eighth defendant to plead guilty in the case, asking Americans to treat unsolicited messages requesting sensitive information with suspicion. Davis added that the group’s success relied on social engineering tactics that tricked victims into providing access to their digital currency holdings.
According to court filings, the operation began before October 2023 and continued through at least March this year. Federal investigators’ findings revealed that the perpetrators initially connected through online gaming communities, growing relationships from friendships to a scheme of thieves and money launderers in California, Connecticut, New York, Florida, and several countries overseas.
Members of the thieves included database intruders who obtained personal information, callers who impersonated trusted institutions, target identifiers who selected victims, money launderers like Mehta, and even residential burglars who stole hardware wallets containing digital currency.
Once the group obtained control of a wallet, the assets were quickly transferred through several addresses before being spent or laundered.
“Kunal Mehta, along with his co-conspirators, stole hundreds of millions of dollars in cryptocurrency from victims and then laundered that money to give it the appearance of legitimacy, spending it lavishly on themselves,” US Attorney Pirro told the press late Tuesday.
Criminal ring threw stolen money into luxurious purchases
Court documents submitted by the prosecutors showed members of the gang using the stolen digital coins to purchase high‑end services and goods, including nightclub outings costing up to half a million dollars in a single night.
Authorities say luxury handbags worth tens of thousands of dollars were sometimes handed out at parties, while high‑value watches, designer clothing, and long‑term rentals of homes in Los Angeles, Miami, and the Hamptons were funded by the scam proceeds.
They also chartered private jets, hired an armed security team, and collected a fleet of exotic cars. Prosecutors estimate the group acquired at least 28 vehicles valued between $100,000 and $3.8 million each.
In August 2024, Mehta’s associates, including conspirator Malone Lam, contacted a victim in Washington, DC, and manipulated them into surrendering access to a wallet containing more than 4,100 Bitcoins.
At the time, the cryptocurrency was worth roughly $263 million. Based on current market prices referenced in the case file, that amount would exceed $384 million today.
Mehta’s shell companies and crypto‑to‑cash operations
Mehta met some of the top-ranking members of the group in early 2024 through an associate connected to a Los Angeles exotic car dealership. He initially exchanged crypto for cash in increments worth tens of thousands of dollars, charging a 10% commission, and later deepened his involvement after creating several shell companies to mask financial flows.
The shell companies were meant to give the stolen funds a legitimate trail, which allowed Mehta to receive already‑laundered crypto from the group, then transfer it to other associates who used crypto mixers to hide the assets’ sources.
The funds eventually cycled back into bank accounts controlled by Mehta’s shell companies through wires sent by fronts within the US. When conspirators needed hard currency, Mehta reportedly delivered it himself or sent wires as he collected his standard commission.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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