Anthony R. Murgio has pleaded guilty to running a multimillion-dollar underground Bitcoin exchange, funneling more than $10 million through a web of deception, fake businesses, and corrupted financial institutions. The Southern District of New York unmasked Murgio’s operation as a brazen fraud scheme disguised as a digital currency platform, violating federal anti-money laundering laws and obstructing a federal regulator’s examination.
Murgio admitted in court before U.S. District Judge Alison J. Nathan that he operated Coin.mx—an unlicensed internet-based Bitcoin exchange—from 2013 to July 2015. To hide the operation, Murgio and his co-conspirators created a fake front called the “Collectables Club,” a phony members-only group for memorabilia traders. They used this shell to open bank accounts and trick financial institutions into processing illicit Bitcoin transactions under the guise of legitimate collectibles sales.
The fraud deepened when Murgio and his network deliberately miscoded credit and debit card transactions tied to Coin.mx. Customers were instructed to lie to their banks, claiming they were buying vintage cards or rare items when, in fact, they were purchasing Bitcoin. These falsified transactions cycled over $10 million through the U.S. financial system in direct violation of Treasury Department regulations for money services businesses.
In 2014, Murgio escalated the scheme by seizing control of the Helping Other People Excel Federal Credit Union (HOPE FCU) in New Jersey—a federally chartered credit union serving low-income members. After paying more than $150,000 in illegal bribes, Murgio installed allies on the board and moved Coin.mx’s banking operations inside the credit union, using it as a shield against scrutiny.
When the National Credit Union Administration (NCUA) moved to examine HOPE FCU in late 2014, Murgio conspired to obstruct the investigation. He and his associates fed false information to regulators, including lies about the headquarters of the Collectables Club, to conceal the true nature of Coin.mx and preserve control over the compromised credit union.
Three individuals tied to the Coin.mx operation have now pleaded guilty. Murgio is scheduled to be sentenced by Judge Nathan on June 16, 2017. U.S. Attorney Preet Bharara stated, “Anthony Murgio took a new age approach to an age-old crime of fraud,” highlighting how digital currency was weaponized to evade federal oversight and exploit vulnerable financial systems.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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