Former TikTok Crypto Influencer Pleads Guilty to $1.2 Million Fraud, Forced to Forfeit Gold Bitcoin and Cash

Former TikTok crypto influencer Denish Sahadevan, also known as Danny Devan, has pleaded guilty to wire fraud, aggravated identity theft, and money laundering charges, resulting in the forfeiture of a gold physical bitcoin and over $17,000 in cash. Sahadevan, who boasted over 26,000 followers on TikTok, ran an intricate scheme that defrauded lenders and the Small Business Administration (SBA) of more than $1.2 million in funds from the Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).

According to the U.S. Attorney’s Office for the District of Maryland, Sahadevan engaged in various monetary transactions to launder the proceeds of his fraudulent activities, including trading securities and cryptocurrency. The revelations were made in a statement released on May 31.

Law enforcement executed a search warrant at Sahadevan’s residence in Potomac during the investigation, uncovering a gold physical bitcoin of undisclosed value, multiple electronic devices, a container containing approximately 18 driver’s licenses belonging to other individuals, and around $17,043 in cash.

As part of the plea agreement, Sahadevan will lose the seized money and bitcoin. Since they are the proceeds of his fraudulent scheme. Additionally, he will have to pay a forfeiture judgment of almost $430,000 and provide restitution.

The fraudulent activities initiated by Sahadevan reportedly began in March 2020. He submitted false EIDL and PPP loan applications for four Maryland entities under his control, falsifying documents. Such as tax forms and bank statements to support his claims. Sahadevan used his residence as a base for producing counterfeit documents and electronically applying for loans.

Sahadevan successfully obtained approximately 71 PPP loans, totaling nearly $941,794.75, resulting in approximately $146,000 in PPP benefits. In addition, he secured eight EIDLs worth $283,900.

The former TikTok influencer now faces severe consequences for his crimes. He could receive a maximum sentence of 20 years in federal prison for wire fraud, and up to 10 years for money laundering. Also, a mandatory two-year sentence for aggravated identity theft, would be served consecutively to any other imposed sentence. U.S. District Judge Deborah L. Boardman has scheduled Sahadevan’s sentencing for September 21.

This case serves as a reminder of the potential risks associated with fraud. The importance of conducting thorough due diligence when dealing with financial matters. The authorities continue to crack down on fraudulent activities, particularly in the realm of cryptocurrencies. Government assistance programs, to protect individuals and organizations from falling victim to such schemes.

By Ryan

Ryan is an author at CryptoPresales, With his expertise in the crypto industry, Ryan shares his insights on various aspects of the blockchain ecosystem, including token sales, decentralized finance, and emerging trends.