Cryptotrader Sentenced to 2.5 Years in USA
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Los Angeles trader known as Bitcoin Maven was sentenced to 30 months in prison for using LocalBitcoins to run a money laundering business.
The trader made a fortune by securing drug deals and other black market transactions. According to rough estimates, the total amount of transactions in his account from 2014 to 2017 year reaches $ 9.5 million, and the annual profit was $ 300 thousand. For illegal financial activities, a Californian court sentenced «businessman» to 2.5 years in prison with confiscation of property. The government seized 40 military-technical cooperation, 25 gold bars and $ 292 thousand in cash.
LocalBitcoins represents a platform on which users post ads for the exchange and sale of cryptocurrency and fiat, in which they indicate the rate, method of payment, communications and other conditions. Since the site itself does not conduct trading operations, then it does not provide personal identification required in the United States. Some members take advantage of this for illegal transactions, denigrating the reputation of a convenient site.
Earlier in this year Morgan Rockuns, CEO of Bitcoin Inc., was also arrested for money laundering with LocalBitcoins. In connection with the increased incidence of illegal activity, the site intends to oblige traders to go through the identification procedure according to the KYC standard.
Recall that the industry financial services became the engine of the blockchain.
text: Ivan Malichenko, photo: Moose