Undercover IRS Sting Nets Suspect in Multi-Million Crypto Money-Laundering Operation
On Wednesday, July 8, 2026, the United States government filed a criminal complaint in the US District Court for the District of New Jersey against Younes Salhi, alleging his involvement in a sophisticated money laundering operation and an attempted extortion scheme.
The complaint, brought forth by Special Agent Kevin Walter of the IRS Criminal Investigation, details a multi-year investigation into a large-scale money laundering organization (MLO) that allegedly facilitated the conversion of illicit cash into cryptocurrency.
The investigation, which began in or around 2024, revealed a network utilizing bank accounts, cash couriers, cryptocurrency exchanges, and digital communication platforms to move millions of dollars. Salhi is accused of orchestrating these activities, which violated federal law.
Central to the charges is Count One, alleging money laundering. Between December 2024 and April 2026, Salhi reportedly conducted financial transactions involving property believed to be the proceeds of specified unlawful activity, namely narcotics distribution. These transactions were intended to conceal and disguise the nature, location, source, ownership, and control of these funds.
Undercover IRS agents, posing as individuals with drug money, engaged in nine controlled cash-for-cryptocurrency transactions with Salhi, totaling over $1.3 million. During these exchanges, Salhi provided cryptocurrency equivalent to the cash received, minus a 3% fee.
Count Two charges Salhi with operating an unlicensed money transmitting business. From December 2024 to April 2026, he allegedly managed or owned an unlicensed money transmitting business that affected interstate and foreign commerce. This business operated without the necessary state license in New Jersey and failed to register with the Financial Crimes Enforcement Network (FinCEN), as required by federal law.
Furthermore, Count Three details an attempted Hobbs Act extortion scheme. Between December 2025 and March 2026, Salhi is accused of attempting to obstruct, delay, and affect commerce through extortion. This involved the wrongful use of actual and threatened force, violence, and fear.
According to the complaint, Salhi attempted to recruit undercover agents to intimidate an individual identified as "Victim-1," who allegedly owed Salhi and others approximately $2 million. Salhi offered the undercover agents $120,000 to recover the approximately $240,000 owed to Salhi, suggesting they "teach him a lesson" and "never take money again" from their people. He provided Victim-1's identifying information to the agents and directed them to Victim-1's wife and sister to locate him.
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