Online Wire Fraud, Cryptocurrency Fraud, and Money Laundering Charges, Explained

At the time of this writing, most online fraud cases prosecuted in federal court are generally charged as wire fraud, a broad federal law covering schemes to obtain money or property through false statements that use interstate wires, which includes the internet, email, text messages, and electronic payments. When cryptocurrency or moving money is involved, these cases are often paired with money laundering or structuring charges. Florida, Ohio, and North Carolina each have their own fraud and money laundering laws that can apply to similar conduct.

Attorney Ron Frey has practiced criminal defense since 2004 and is admitted in the Middle and Southern Districts of Florida, the Northern and Southern Districts of Ohio, and the Western and Eastern Districts of North Carolina. Drawing on his experience handling many internet and computer crime cases, he has found that online fraud cases often turn on what a person actually knew, where the money went, and whether the blockchain and bank records tell the story the government says they do. Attorney Frey also holds a Bachelor of Science in Business Administration, with a major in finance, and a Bachelor of Science in Economics from John Carroll University, a background that can help in cases built on financial records and money flows. Because federal fraud and digital asset rules change often, anyone facing these charges should speak with an attorney about how the current law applies.

What Are Online Fraud and Crypto Fraud Charges Generally?

These charges generally involve an alleged scheme to obtain money or property through false or misleading statements. Online versions include investment and crypto “pig butchering” schemes, romance scams, business email compromise, fake online stores, NFT and token promotions, and AI voice-cloning scams (see AI Fraud and Voice Cloning).

Many people charged were not the organizers. Some opened accounts or moved funds for someone they met online, believing it was a job or a legitimate investment, and are later described as “money mules.” Whether a person knew about the fraud is often the central question.

See our page on Identity Theft and Aggravated Identity Theft Charges, Explained.

State vs. Federal Fraud Cases

Because online fraud almost always uses interstate wires and often involves victims in many states, federal prosecution is common, typically after an investigation by the FBI, the Secret Service, HSI, or IRS Criminal Investigation. State prosecutors also bring fraud and money laundering cases, especially when the victims and the person charged are local. See our post on computer and internet crimes in both state and federal court.

Common Evidence and How These Investigations Work

These cases typically rely on bank and exchange records, blockchain tracing, emails, chat apps such as Telegram, device data, and cooperating witnesses. Blockchain analysis tools can be powerful, but they also involve assumptions about who controls which wallet. See our posts on email evidence, Telegram evidence, and cloud storage evidence.

How Attorney Ron Frey Approaches Online Fraud Cases

Every case is different, but drawing on his experience handling many of these cases, Attorney Ron Frey generally looks closely at:

• Knowledge and intent. What the person knew, what they were told, and whether they were themselves deceived.
• The money trail. Bank, exchange, and blockchain records, and the assumptions built into any tracing analysis.
• Attribution. Who actually controlled the accounts, wallets, and devices.
• Loss amounts. How the government calculates loss and how many people it attributes to the scheme.
• The person’s role and background. Many people charged have no record. See our guide to a first-offense internet crime charge.

What to Do If Contacted by Federal Agents

Fraud investigations frequently begin with a target letter, a subpoena, a frozen account, or a visit from agents. Attorney Ron Frey generally advises that a person contacted about a fraud investigation exercise the right to remain silent and have an attorney involved before giving interviews, producing records, or moving funds. Our guide to a federal target letter explains more.

The Laws Involved

In the federal system, online fraud is typically charged under 18 U.S.C. § 1343 (fraud by wire, radio, or television) and 18 U.S.C. § 1349 (attempt and conspiracy), and related money movement is typically charged under 18 U.S.C. § 1956 (laundering of monetary instruments), 18 U.S.C. § 1957 (engaging in monetary transactions in property derived from specified unlawful activity), and, for structuring, 31 U.S.C. § 5324. In Florida, these cases are generally addressed under Section 817.034, Florida Statutes, the Florida Communications Fraud Act, and Section 896.101, Florida Statutes, Florida’s Money Laundering Act. In Ohio, similar conduct is typically charged under R.C. 2913.05 (telecommunications fraud) and R.C. 1315.55, Ohio’s money laundering provisions, and in North Carolina under G.S. 14-100 (obtaining property by false pretenses) and G.S. 14-118.8 (money laundering). As always, laws are subject to change and revision, so contact Attorney Ron Frey to discuss the details of your case and the current status of the law.

Why Talk With an Attorney About the Details?

A website can only offer a general picture. Federal fraud law, digital asset regulation, and enforcement priorities change often. It is important to discuss the details of any specific situation with an attorney at the time it arises.

Talk With Attorney Ron Frey About an Online Fraud Charge

If you are facing a wire fraud, crypto fraud, or money laundering charge, or are under investigation, contact Attorney Ron Frey of The Frey Law Firm, LLC. You can also read more about financial crimes.

This page is for general information only. It is not legal advice, and reading it or contacting us does not create an attorney-client relationship. Laws change, and how they apply depends on the facts of each case.