Payza Founders Sentenced in $250M Money Laundering Case
Canadian brothers Firoz and Ferhan Patel are headed to prison after admitting their payments company had broken the law.
Nov 13, 2020 at 6:25 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/6HHRTF3V3FAMJPQDD5ORPNJLUM.jpg)
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)
The founders of digital payments processor Payza will serve year-plus prison terms and forfeit $4.5 million in seized assets for breaking federal money transmission laws, the U.S. Department of Justice said.
Brothers Firoz and Ferhan Patel, both Canadian, had pleaded guilty in July to a lineup of financial crimes stemming from Payza, their international payments startup. Prosecutors said the unlicensed firm processed more than $250 million, including funds known to be associated with crime, an allegation to which the brothers ultimately admitted.
On Tuesday, Firoz received a 36-month sentence and Ferhan an 18-month sentence from U.S. District Court in Washington, D.C. Their company Payza (aka MH Pillars) will be in corporate probation for the next three years.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/XM35FFSDXJHX7J4V4IP3ILWWMM.png)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/T4OFRML4KRGD7PQLA2FVRWPZWY.png)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/W5HUTH6SPNAHNMQOZEDMJIN5YA.png)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/EVMRRWVN4NB6NJHN7PKKTUZUQQ.jpg)