Los Angeles Rideshare Driver Accused of Scamming Over $2 Million in COVID Relief Loans to Buy Cryptocurrency

On March 19, Decrypt reported that a ride-hailing driver in Los Angeles was arrested at San Francisco International Airport on Tuesday for allegedly defrauding over $2 million in COVID-19 relief funds and using the proceeds to buy cryptocurrency. He faces federal wire fraud and money laundering charges. Per charges filed by the U.S. Attorney’s Office for the Central District of California, 34-year-old Bruce Choi—a Los Angeles resident of Koreatown—posed as CEO and owner of the fictitious firm “Premier Republic” to submit fraudulent Economic Injury Disaster Loan (EIDL) applications to authorities, securing roughly $2 million in relief funds. Prosecutors noted Premier Republic “had no actual business operations or employees.” Choi then transferred the funds to cryptocurrency exchange Kraken to purchase crypto. Federal prosecutors seized nearly 40 BTC and other cryptocurrencies during the investigation. If convicted, Choi faces up to 30 years in prison per wire fraud charge and up to 10 years for money laundering.