The US has sentenced a fugitive to 20 years in prison for cryptocurrency fraud

A complete overview of the shocking case

A federal judge in the Southern District of New York has sentenced Mohamed Ali Rashid, 32, a fugitive (also known online as “ CryptoKing ” and “ Mr. Million ”) , to 240 months ( 20 years ) in prison and three years of probation for orchestrating a $73 million cryptocurrency investment scam .

• He created fraudulent cryptocurrency trading platforms promising annual returns of 200-500%.

• They use fake dashboards displaying fabricated profits to lure victims.

• Fundraising through social media influencers, Telegram groups, and fake celebrity testimonials.

• Total number of victims: >14,000 worldwide (the majority are residents of the United States and the EU).

• The money was laundered through Monero (XMR) , Tornado Cash , and offshore exchanges before being smuggled to Dubai.

The verdict was handed down on February 4, 2026, bringing to a close a high-profile case spanning multiple continents and involving sophisticated fraudulent trading platforms, celebrity testimonials, and international money laundering.

The charge is "Vehicle wanted by the police"

The defendant's evasiveness significantly impacts the outcome of a case. Courts often view evasion of prosecution as an aggravating circumstance, interpreting it as a denial of responsibility and a continued risk of harm. In this case, the attempts to avoid arrest did not save the defendant from conviction; instead, they strengthened the argument for the maximum sentence.

Although involving digital assets, the case was judged under traditional fraud law, not within a specific legal framework for cryptocurrencies. This underscores a crucial fact: while the technology may be novel, the legal analysis is not. The court assessed the amount of damages, the number of victims, intent, and obstructive conduct, just as in cyber or securities fraud cases.

Implications for the cryptocurrency industry

The 20-year prison sentence reinforces a broader law enforcement trend. U.S. authorities are combining improved blockchain analytics with traditional investigative tools, bridging the gap between on-chain activity and courtroom evidence. For legitimate operators, this could improve trust. For bad actors, the risk-reward calculation has definitively shifted.

From an investor's perspective, this ruling sends a confidence-building signal: the courts are willing to impose penalties proportionate to damages, even in complex cryptocurrency cases. That deterrent is crucial as individual investor participation increases and fraud increasingly targets less knowledgeable users through social engineering.

Our review

The 20-year prison sentence for the operator of the Incognito Market (and now this $73 million scam) demonstrates that U.S. prosecutors are treating large-scale cryptocurrency scams with the same seriousness as traditional Ponzi schemes and securities fraud. Extradition from the UAE — once considered a safe haven — further narrows the list of places where criminals can flee.

For the legitimate cryptocurrency industry, this is ultimately positive as each significant conviction reduces fraud rates and builds trust in regulated platforms. However, for crypto cryptocurrencies and coin-mixing platforms, each case increases scrutiny and damages reputation.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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