Queens Man Convicted of Laundering Bitcoin and Operating Unlicensed Money Transmitting Business
2022-10-11 · Press release
Mentions 1960 Crypto Verified 1960
Summary: Earlier today, a federal jury in Brooklyn convicted Mustafa Goklu, also known as “Mustangy,” of money laundering and operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug trafficking.
Earlier today, a federal jury in Brooklyn convicted Mustafa Goklu, also known as “Mustangy,” of money laundering and operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug trafficking. The verdict followed a four-day trial before United States District Judge Pamela K. Chen. When sentenced, Goklu faces up to 25 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The defendant offered his customers the ability to launder their criminal proceeds, remain anonymous and conceal where their Bitcoin was coming from so they could continue to engage in drug trafficking and other crimes while avoiding law enforcement detection,” stated United States Attorney Peace. “With today’s verdict, Goklu’s illicit business of converting money from one form to another without a required license has been shut down and the defendant has been convicted for his crimes.”
Mr. Peace thanked the U.S. Drug Enforcement Administration, New York Division, for its outstanding investigative work on the case.
As proven at trial, in July 2018, DEA special agents identified an advertisement posted on localbitcoins.com where an individual with the username “Mustangy” offered to purchase up to $99,999 worth of bitcoins (“BTC”), a digital currency also known as cryptocurrency, and convert them into U.S. currency for a fee. Law enforcement agents later identified Goklu as the individual using the username Mustangy. On July 11, 2018, a DEA Special Agent acting in an undercover capacity (the “UC”) began exchanging encrypted text messages with Goklu to arrange in-person exchanges of BTC to U.S. currency. The UC and the defendant subsequently met and engaged in seven transactions or attempted exchanges of BTC to cash over a nine-month period, culminating in Goklu’s arrest in April 2019. The UC indicated to the defendant on multiple occasions that the source of the BTC the defendant was exchanging was narcotics trafficking and that as part of the UC’s business he sold oxycodone, Adderall, and marijuana. The transactions occurred in the defendant’s parked Mercedes-Benz, at a coffee shop in Sunnyside, Queens, and locations in Manhattan. The amounts exchanged at each transaction ranged from approximately $5,000 to $50,000 for a total of $133,000. During each transaction, the UC transferred BTC to Goklu’s cryptocurrency wallet, after which the defendant retained a seven or eight percent commission fee and provided the UC with the remaining amount in cash. The evidence introduced at trial also showed that the defendant was engaged in similar illicit Bitcoin exchanges with multiple other individuals.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gillian Kassner and Marietou E. Diouf are in charge of the prosecution with the assistance of paralegal specialist Bridget Donovan.
The Defendant:
MUSTAFA GOKLU
Age: 50
Sunnyside, Queens
E.D.N.Y. Docket No. 19-CR-386 (PKC)
- district_office
- Eastern District of New York
- usa_name
- Breon Peace
- event_type
- conviction
- judge_name
- Pamela K. Chen
- judge_title
- U.S. District Judge
- case_number
- 19-CR-386
- max_penalty_text
- up to 25 years in prison
- sentence_summary
- money_amounts
- $99,999, $5,000, $50,000, $133,000
- crypto_assets
- BTC
- statutes_json
- timeline_json
- press_release_url
- https://www.justice.gov/usao-edny/pr/queens-man-convicted-laundering-bitcoin-and-operating-unlicensed-money-transmitting
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 1634 | Mustafa Goklu | defendant | Sunnyside, Queens | 50 | convicted | |||
| 1635 | Pamela K. Chen | judge | United States District Judge | U.S. District Court | Brooklyn, New York | |||
| 1636 | Breon Peace | prosecutor | United States Attorney | U.S. Attorney's Office for the Eastern District of New York | New York | |||
| 1637 | Gillian Kassner | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | New York | |||
| 1638 | Marietou E. Diouf | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | New York | |||
| 1639 | Bridget Donovan | paralegal specialist | Paralegal Specialist | U.S. Attorney's Office | New York |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1022 | U.S. Drug Enforcement Administration | DEA | investigation | New York Division | Identified the Bitcoin advertisement, conducted undercover operations, and executed transactions leading to arrest | |
| 1023 | United States Attorney's Office for the Eastern District of New York | USAO-EDNY | prosecution | Eastern District of New York | Prosecuted the case with Assistant U.S. Attorneys and handled legal proceedings |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 823 | money laundering | Mustafa Goklu | convicted | 0 | enrichment | |||||||||
| 824 | operating an unlicensed money transmitting business | Mustafa Goklu | convicted | 1 | enrichment | 2026-09-16T19:45:56+00:00 | ||||||||
| 2752 | operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug trafficki | 1 | press | 2026-09-16T19:45:56+00:00 | ||||||||||
| 2753 | operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug | 1 | press | 2026-09-16T19:45:56+00:00 | ||||||||||
| 2754 | unlicensed money transmitting business as part of a scheme to launder the purp | 1 | press | 2026-09-16T19:45:56+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 595 | seizure | $133,000 | USD | Bitcoin to cash transactions | cryptocurrency | Mustafa Goklu | completed |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 243 |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 272 | The defendant offered his customers the ability to launder their criminal proceeds, remain anonymous and conceal where their Bitcoin was coming from so they could continue to engage in drug trafficking and other crimes while avoiding law enforcement detection. With today’s verdict, Goklu’s illicit business of converting money from one form to another without a required license has been shut down and the defendant has been convicted for his crimes. | Breon Peace | United States Attorney for the Eastern District of New York | U.S. Attorney's Office | statement | Announcing the conviction verdict | Highlights the defendant's role in enabling drug trafficking through cryptocurrency laundering and underscores the legal consequences of operating an unlicensed money transmitting business. |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1003 | Money Laundering | Laundering Bitcoin proceeds from drug trafficking by converting them into cash through unlicensed money transmitting services. | Central to the charges and conviction, highlighting the defendant's role in facilitating criminal proceeds. | Local | Recent development | Law enforcement, Defendant, Victims of drug trafficking | |
| 1004 | Cryptocurrency | Use of Bitcoin as a medium for money laundering and unlicensed financial transactions. | Highlights the role of digital currencies in facilitating illicit financial activities. | International | Recent development | Law enforcement, Financial institutions, Defendant | |
| 1005 | Unlicensed Money Transmitting Business | Operating without a license to convert cryptocurrency into cash, evading regulatory oversight. | A key charge leading to conviction, emphasizing the need for compliance with financial regulations. | 18 U.S.C. § 1960 | Local | Recent development | Law enforcement, Financial regulators, Defendant |
| 1006 | Drug Trafficking Proceeds | Bitcoin funds derived from the sale of oxycodone, Adderall, and marijuana used in laundering operations. | Identifies the source of laundered funds, linking the case to drug-related crimes. | Local | Recent development | Drug traffickers, Law enforcement, Victims of drug abuse | |
| 1007 | Undercover Operations | DEA's use of an undercover agent to conduct transactions and gather evidence against the defendant. | Critical to the investigation and securing the conviction. | Local | Recent development | Law enforcement, Defendant | |
| 1008 | Federal Prosecution | The case was prosecuted by the U.S. Attorney's Office for the Eastern District of New York. | Demonstrates federal involvement in combating financial crimes and money laundering. | 18 U.S.C. § 1960 | National | Recent development | U.S. Attorney's Office, Federal agencies, Defendant |
CourtListener / RECAP
Linked dockets
- CL #50277753 1:19-cr-00386 (nyed)
Documents
| Entry | Description | OCR | Download |
|---|---|---|---|
| #111 desc | Letter Conveying Pro Se Status Update as to Mustafa Goklu (Attachments: # 1 Supplement Pro Se Status Update) (Brissenden, Matthew) (Entered: 02/02/2026) | none | none |
| entry desc | Motions Terminated as to Mustafa Goklu: 110 Motion for Leave to File and Motion to Seal Document are terminated. These motions were filed after the Court granted counsel leave to file a redacted document. See Order dated 11/5/2025. (FA) | none | none |
| #110 desc | Letter MOTION for Leave to File Document (Redacted Status Update), MOTION to Seal Document 109 Letter (Previously Filed Status Update at 109-1) by Mustafa Goklu. (Attachments: # 1 Exhibit A) (Brissenden, Matthew) (Entered: 11/05/2025) | none | none |
| entry desc | ORDER as to Mustafa Goklu: The Court is in receipt of Defendant's status report dated October 23, 2025 109 . Defendant is permitted to remain in Turkey for the next three months. He shall file another status report with the same information by February 2, 2026. Ordered by Judge Pamela K. Chen on 11/5/2025. (FA) | none | none |
| entry desc | ORDER as to Mustafa Goklu: Counsel for defendant having informed this Court's deputy that Exhibit A of defendant's 109 letter contains the defendant's Turkish social security number, the Clerk of Court is respectfully directed to restrict Exhibit A to case participants. Counsel Brissenden is directed to publicly refile a redacted version by 11/19/2025. Ordered by Judge Pamela K. Chen on 11/5/2025. Modified on 11/5/2025 to correct typographical error. (FA) | none | none |
| #109 desc | Letter Enclosing Update to Court as to Mustafa Goklu (Attachments: # 1 Exhibit A) (Brissenden, Matthew) (Entered: 10/23/2025) | none | none |
| entry desc | SCHEDULING ORDER as to Mustafa Goklu: In light of the Probation Department's response 108 to Defendant Goklu's travel request 107, the Court amends its prior order granting that request and now directs Defendant to file a report by October 24, 2025, providing the status of his mother's health and confirming (1) his employment in Turkey (including the name of his employee, the type of work he is performing, and his hours and wages) and (2) the provision of money to his family in the United States. Defendant will supply documentation of his employment, his earnings, and his transmission of money to his family in the United States. Defendant is on notice that the Court will then consider whether to require him to return to the United States before the end of the requested six-month period. Ordered by Judge Pamela K. Chen on 9/30/2025. (FA) | none | none |
| entry desc | ORDER granting 107 Motion to Travel as to Mustafa Goklu: Defendant Mustafa Goklu's request to modify his supervised release conditions to travel to and reside in Turkey between September 25, 2025 and March 25, 206 is granted. However, because neither the government nor the Probation Department has had an opportunity to respond to Defendant's request, they shall be permitted to do so by 10/3/25. Should either agency object, the Court will consider their objection(s) and determine whether to require Defendant to return to the United States. Ordered by Judge Pamela K. Chen on 9/19/2025. (Chen, Pamela) | none | none |
| #107 desc | MOTION to Travel by Mustafa Goklu. (Attachments: # 1 Memorandum in Support, # 2 Exhibit A, # 3 Exhibit B, # 4 Exhibit C) (Brissenden, Matthew) (Entered: 09/18/2025) | none | none |
| entry desc | ORDER granting 106 Motion for Return of Property/PostTrial as to Mustafa Goklu: The Pretrial Services department is respectfully directed to return to Mr. Goklu his United States and Turkish passports. Ordered by Judge Pamela K. Chen on 4/2/2025. (FG) | none | none |
| #106 desc | Letter MOTION for Return of Property/PostTrial by Mustafa Goklu. (Brissenden, Matthew) (Entered: 03/28/2025) | none | none |
| #105 desc | TRANSCRIPT of Proceedings as to Mustafa Goklu held on August 29, 2019, before Judge Orenstein. Court Transcriber: Transcriptions Plus II, Inc. Email address: RL.Transcriptions2@gmail.com. Transcript may be viewed at the court public terminal or purchased through the Court Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER.File redaction request using event "Redaction Request - Transcript" located under "Other Filings - Other Documents". Redaction Request due 7/1/2024. Redacted Transcript Deadline set for 7/11/2024. Release of Transcript Restriction set for 9/9/2024. (RC) (Entered: 06/10/2024) | none | none |
| entry desc | Electronic Index to Record on Appeal as to Mustafa Goklu sent to US Court of Appeals 104 Notice of Appeal - Final Judgment Documents are available via Pacer. For docket entries without a hyperlink or for documents under seal, contact the court and we'll arrange for the document(s) to be made available to you. (VJ) | none | none |
| #104 desc | NOTICE OF APPEAL by Mustafa Goklu Appeal Record due by 3/22/2024. (Shroff, Sabrina) (Entered: 03/22/2024) | none | none |
| #102 desc | JUDGMENT as to Mustafa Goklu: The Court sentences the defendant to imprisonment for a period of sixteen (16) months on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. Two (2) years supervised release, with conditions, on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. $100 special assessment fee for each count for a total of $200. Underlying Indictment dismissed on government's motion. Ordered by Judge Pamela K. Chen on 3/14/2024. (FG) (Entered: 03/21/2024) | none | none |
| entry desc | Minute Entry for proceedings held before Judge Pamela K. Chen: Fatico Hearing and Sentencing held on 3/14/2024 for Mustafa Goklu. Appearances by AUSA Francisco Navarro with Tareva Torres, paralegal specialist; Sabrina Shroff, CJA, for defendant (on bond). Probation Officer Michelle Malko. Turkish interpreters AJ Elterman and George Esayan. Case called. Interpreters sworn. Fatico hearing held. Witness sworn and testified. Exhibits marked and entered into evidence. Sentencing held. Statements of government and defense heard. For the reasons stated on the record, the Court sentences the defendant to imprisonment for a period of sixteen (16) months on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. Two (2) years supervised release, with conditions, on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. $100 special assessment fee for each count for a total of $200. Defendant informed of right to appeal. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons before 2 p.m. on 5/14/2024. Defendant's pretrial conditions of release remain unchanged and in effect until he is in the custody of the BOP. Open count/underlying Indictment dismissed on government's motion. (Court Reporter Avery Armstrong.) (FG) | none | none |
| #101 desc | Letter providing updated 3500 material for Fatico hearing as to Mustafa Goklu (Navarro, Francisco) (Entered: 03/11/2024) | none | none |
| entry desc | ORDER granting 99 Motion to Continue Sentencing as to Mustafa Goklu: The Fatico hearing and sentencing is adjourned to 3/14/2024 at 2 p.m. in Courtroom 4F North. The Court grants defense leave to file a redacted version of her adjournment request based on the privileged nature of the redacted information. Ordered by Judge Pamela K. Chen on 3/1/2024. (FG) | none | none |
| #100 desc | MOTION to Continue Sentencing by Mustafa Goklu as to Mustafa Goklu. (Shroff, Sabrina) (Entered: 02/29/2024) | none | none |
| #99 desc | MOTION to Continue Sentencing redacted version of letter request by Mustafa Goklu. (Shroff, Sabrina) (Entered: 02/29/2024) | none | none |
| #99 desc | MOTION to Continue Sentencing redacted version of letter request by Mustafa Goklu. (Shroff, Sabrina) (Entered: 02/29/2024) | none | none |
| #100 desc | MOTION to Continue Sentencing by Mustafa Goklu as to Mustafa Goklu. (Shroff, Sabrina) (Entered: 02/29/2024) | none | none |
| 467417108 desc | ORDER granting 99 Motion to Continue Sentencing as to Mustafa Goklu: The Fatico hearing and sentencing is adjourned to 3/14/2024 at 2 p.m. in Courtroom 4F North. The Court grants defense leave to file a redacted version of her adjournment request based on the privileged nature of the redacted information. Ordered by Judge Pamela K. Chen on 3/1/2024. (FG) | none | none |
| #101 desc | Letter providing updated 3500 material for Fatico hearing as to Mustafa Goklu (Navarro, Francisco) (Entered: 03/11/2024) | none | none |
| 467417110 desc | Minute Entry for proceedings held before Judge Pamela K. Chen: Fatico Hearing and Sentencing held on 3/14/2024 for Mustafa Goklu. Appearances by AUSA Francisco Navarro with Tareva Torres, paralegal specialist; Sabrina Shroff, CJA, for defendant (on bond). Probation Officer Michelle Malko. Turkish interpreters AJ Elterman and George Esayan. Case called. Interpreters sworn. Fatico hearing held. Witness sworn and testified. Exhibits marked and entered into evidence. Sentencing held. Statements of government and defense heard. For the reasons stated on the record, the Court sentences the defendant to imprisonment for a period of sixteen (16) months on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. Two (2) years supervised release, with conditions, on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. $100 special assessment fee for each count for a total of $200. Defendant informed of right to appeal. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons before 2 p.m. on 5/14/2024. Defendant's pretrial conditions of release remain unchanged and in effect until he is in the custody of the BOP. Open count/underlying Indictment dismissed on government's motion. (Court Reporter Avery Armstrong.) (FG) | none | none |
| #102 desc | JUDGMENT as to Mustafa Goklu: The Court sentences the defendant to imprisonment for a period of sixteen (16) months on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. Two (2) years supervised release, with conditions, on counts 1 and 2 of the Superseding Indictment (S-1) to run concurrently with each other. $100 special assessment fee for each count for a total of $200. Underlying Indictment dismissed on government's motion. Ordered by Judge Pamela K. Chen on 3/14/2024. (FG) (Entered: 03/21/2024) | none | none |
| #104 desc | NOTICE OF APPEAL by Mustafa Goklu Appeal Record due by 3/22/2024. (Shroff, Sabrina) (Entered: 03/22/2024) | none | none |
| 467417113 desc | Electronic Index to Record on Appeal as to Mustafa Goklu sent to US Court of Appeals 104 Notice of Appeal - Final Judgment Documents are available via Pacer. For docket entries without a hyperlink or for documents under seal, contact the court and we'll arrange for the document(s) to be made available to you. (VJ) | none | none |
| #105 desc | TRANSCRIPT of Proceedings as to Mustafa Goklu held on August 29, 2019, before Judge Orenstein. Court Transcriber: Transcriptions Plus II, Inc. Email address: RL.Transcriptions2@gmail.com. Transcript may be viewed at the court public terminal or purchased through the Court Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER.File redaction request using event "Redaction Request - Transcript" located under "Other Filings - Other Documents". Redaction Request due 7/1/2024. Redacted Transcript Deadline set for 7/11/2024. Release of Transcript Restriction set for 9/9/2024. (RC) (Entered: 06/10/2024) | none | none |
| #106 desc | Letter MOTION for Return of Property/PostTrial by Mustafa Goklu. (Brissenden, Matthew) (Entered: 03/28/2025) | none | none |
| 467417116 desc | ORDER granting 106 Motion for Return of Property/PostTrial as to Mustafa Goklu: The Pretrial Services department is respectfully directed to return to Mr. Goklu his United States and Turkish passports. Ordered by Judge Pamela K. Chen on 4/2/2025. (FG) | none | none |
| #107 desc | MOTION to Travel by Mustafa Goklu. (Attachments: # 1 Memorandum in Support, # 2 Exhibit A, # 3 Exhibit B, # 4 Exhibit C) (Brissenden, Matthew) (Entered: 09/18/2025) | none | none |
| 467417118 desc | ORDER granting 107 Motion to Travel as to Mustafa Goklu: Defendant Mustafa Goklu's request to modify his supervised release conditions to travel to and reside in Turkey between September 25, 2025 and March 25, 206 is granted. However, because neither the government nor the Probation Department has had an opportunity to respond to Defendant's request, they shall be permitted to do so by 10/3/25. Should either agency object, the Court will consider their objection(s) and determine whether to require Defendant to return to the United States. Ordered by Judge Pamela K. Chen on 9/19/2025. (Chen, Pamela) | none | none |
| 467417119 desc | SCHEDULING ORDER as to Mustafa Goklu: In light of the Probation Department's response 108 to Defendant Goklu's travel request 107, the Court amends its prior order granting that request and now directs Defendant to file a report by October 24, 2025, providing the status of his mother's health and confirming (1) his employment in Turkey (including the name of his employee, the type of work he is performing, and his hours and wages) and (2) the provision of money to his family in the United States. Defendant will supply documentation of his employment, his earnings, and his transmission of money to his family in the United States. Defendant is on notice that the Court will then consider whether to require him to return to the United States before the end of the requested six-month period. Ordered by Judge Pamela K. Chen on 9/30/2025. (FA) | none | none |
| #109 desc | Letter Enclosing Update to Court as to Mustafa Goklu (Attachments: # 1 Exhibit A) (Brissenden, Matthew) (Entered: 10/23/2025) | none | none |
| 467417121 desc | ORDER as to Mustafa Goklu: Counsel for defendant having informed this Court's deputy that Exhibit A of defendant's 109 letter contains the defendant's Turkish social security number, the Clerk of Court is respectfully directed to restrict Exhibit A to case participants. Counsel Brissenden is directed to publicly refile a redacted version by 11/19/2025. Ordered by Judge Pamela K. Chen on 11/5/2025. Modified on 11/5/2025 to correct typographical error. (FA) | none | none |
| 467417122 desc | ORDER as to Mustafa Goklu: The Court is in receipt of Defendant's status report dated October 23, 2025 109 . Defendant is permitted to remain in Turkey for the next three months. He shall file another status report with the same information by February 2, 2026. Ordered by Judge Pamela K. Chen on 11/5/2025. (FA) | none | none |
| #110 desc | Letter MOTION for Leave to File Document (Redacted Status Update), MOTION to Seal Document 109 Letter (Previously Filed Status Update at 109-1) by Mustafa Goklu. (Attachments: # 1 Exhibit A) (Brissenden, Matthew) (Entered: 11/05/2025) | none | none |
| 467417124 desc | Motions Terminated as to Mustafa Goklu: 110 Motion for Leave to File and Motion to Seal Document are terminated. These motions were filed after the Court granted counsel leave to file a redacted document. See Order dated 11/5/2025. (FA) | none | none |
| #111 desc | Letter Conveying Pro Se Status Update as to Mustafa Goklu (Attachments: # 1 Supplement Pro Se Status Update) (Brissenden, Matthew) (Entered: 02/02/2026) | none | none |
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