Bruce Choi, 34, a Los Angeles rideshare driver, has been arrested on federal charges of wire fraud and money laundering. Prosecutors allege he obtained over $2 million in COVID-19 Economic Injury Disaster Loans using a fictional company called Premier Republic.
Choi allegedly submitted fraudulent applications claiming business operations that never existed. The loan proceeds were wired to Kraken, where he purchased cryptocurrency.
Federal authorities seized nearly 40 BTC and other digital assets as part of the investigation.
Each wire fraud count carries up to 30 years in prison; money laundering carries up to 10 years.
The case is part of broader U.S. efforts to hold accountable those who abused pandemic relief programs.