U.S. citizen faces a 5 year prison sentence for selling bitcoins through LocalBitcoins “without a license”
A US citizen is recognized as guilty in Federal court in the conduct “no business license money transfer” using LocalBitcoins.com, reported the Ministry of Justice on 29 October.
In the press release of the Ministry of Justice reported that U.S. citizen, Jacob Burrell Campos, admitted to “the sale of hundreds of thousands of dollars” in bitcoin “more than 1,000 clients” in the United States in the period from January 2015 to April 2016, the year that was identified as the establishment of unregistered “bitcoin exchange”.
Using popular p2p platform LocalBitcoins.com, Burrell has not registered its activity in the Network to combat financial crimes (FinCEN), the authority of the Ministry of Finance of the USA, and also not investigated the origin of clients ‘ funds, for example, applying measures to combat money laundering, said the Federal court.
It is reported that after the placement of the ad on LocalBitcoins, Burrell has agreed sales for a Commission of 5% on top of market rates, “often” using communications encrypted emails or applications for sending SMS, taking over their services cash, through an ATM or MoneyGram.
Burrell also admitted that his account on an unnamed “US-based and regulated” crypto currency exchange was closed because of “suspicious” transactions. He then moved to Hong Kong a platform, through which, according to him, he bought the cryptocurrency by 3.29 million dollars in the period from March 2015 to April 2017 of the year, “hundreds” of individual transactions.
The press release also stresses that Burrell admitted in exchange of dollars, which he kept in Mexico, the dealer of precious metals in San Diego. Burrell admitted in the fact that he filed false tax returns, for which he expects a judgment of the 13th December.
Burrell and co-conspirators, whose names were not disclosed, every day imported more than $ 1 million at the end of 2016 and the beginning of this year, portions of 10 000 to avoid Declaration.
The final verdict will be rendered on 11 February, however, the defendant already agreed to pay $ 800,000 for the transaction settlement. Burrell faces up to 5 years in prison.
The U.S. attorney Adam Braverman, said:
“The business of transferring money without a license, especially committed on the border or near it, is a serious threat to the integrity of the banking system of the US and “opens the door” for criminals to use these businesses to launder the resulting criminal activity wastes”
In September trade bitcoin reached record-low numbers on Localbitcoins that are associated with the introduction of p2p platform in their work identify users according to the standards of KYC checks (know your customer) and AML (anti money laundering).