TikTok Influencer Used Bitcoin to Launder $420,000 in COVID Relief Loans

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Denish Sahadevan, better known as Danny Devan on TikTok, pleaded guilty in federal court on Wednesday to charges of wire fraud, aggravated identity theft and money laundering involving cryptocurrencies such as Bitcoin.

The U.S. Attorney’s Office for the District of Maryland said in a press release that the influencer attempted to defraud lenders and the U.S. government out of $1.2 million in COVID-19 relief loans.

Danny Devan rose to fame on TikTok for creating videos about investing in stocks and cryptocurrency, reaching 26,000 followers at the time of his arrest. At its peak, Sahadevan had amassed more than 630,000 subscribers, according to Business Insider.

At the start of the pandemic, the US government enacted the CARES (Coronavirus Aid, Relief, and Economic Security) Act to provide financial assistance to Americans suffering from the economic effects of COVID-19 measures. This included Paycheck Protection Programs (PPPs) and Economic Disaster Loans (EIDLs), both used by Devan for his financial schemes, according to US prosecutors.

Beginning in March 2020, Devan allegedly created fake tax forms and bank statements and then submitted PPP and EIDL applications through several Maryland-based entities he controlled. Additionally, he used information belonging to an acquaintance without that person’s consent to legitimize certain documents, prosecutors said.

Sahadevan applied for around 71 PPP loans, authorities said, which amounted to $941,000. He eventually received $146,000 in PPP benefits, but also applied and successfully obtained $238,000 through 8 EIDLs.

Regarding trading in securities and cryptocurrencies, prosecutors say the 31-year-old tried to launder government funds, settle personal debts and transfer some of the money to his girlfriend. friend along the way.

The social media personality borrowed $1.3 million, without disclosing the $283,000 debt from her EIDL benefits, and bought a six-bedroom mansion in Potomac, Maryland.

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It all ended on February 24, 2023, when police raided his Potomac residence. Authorities then discovered that Devan had 18 other people’s driver’s licenses, as well as $17,000 in cash, and what Maryland prosecutors described as a physical gold Bitcoin in a black case. The police seized everything.

Sahadevan is now awaiting sentencing in Maryland. He faces a maximum federal prison sentence of 20 years for wire fraud; 10 years for money laundering; and two mandatory years for aggravated identity theft.

As part of his plea deal, Sahadevan will lose the cash and Bitcoin he owned and pay $429,000 in restitution.

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