April 11, 2019, | AtoZ Markets - A 22-year-old man in the US has been sentenced to two years in prison for unlicensed bitcoin sale to over 1,000 customers throughout the United States.
Unlicensed bitcoin seller comes from Mexico
According to an official press release on the Department of Justice website, the convicted person is a 22-year-old US citizen and a resident of Mexico, Jacob Burrell Campos. Burrell Campos has been detained without bail since August 2018.
And this week, the Jacob Burrell Campos unlicensed bitcoin sale case came to a logical conclusion and he was sentenced to two years in prison for selling bitcoin illegally.
The US Department of Justice representatives state that Burrell promoted his unlicensed bitcoin sale business through LocalBitcoins.com. He used text messages and emails to communicate with his clients. Barrel accepted payments through MoneyGram, ATMs, as well as personally. He had a commission 5 percent above the current exchange rate.
Unlicensed bitcoin sale case charges in a brief
Burrell was not accused of committing such criminal acts, as theft or fraud with clients, but an unlicensed bitcoin sale was enough to guarantee him two years in prison.
However, it is worth noting that fraud does not look such a terrible crime against the background of the possible use of cryptocurrency in money laundering and terrorism financing. In the United States, unregulated funds that potentially allow criminals to launder money without thorough verification are of keen interest on the part of the local legal authorities.
According to the US authority, Burrell’s crime was to exchange bitcoins without registering with the US Department of the Treasury Financial Crime Network (FinCEN) and without applying the necessary measures to ensure money laundering prevention.
The convict pleaded guilty back in October 2018, stating that he did not take any measures to combat money laundering and did not check the data of his clients and information about where their money came from. The US Department of Justice decided that Burrell provided its clients with “anonymity and confidentiality” and exchanged more than $ 1 million.
How unlicensed bitcoin sale started
Burrell claims that at first, he traded virtual currencies on a regulated US stock exchange, but his account was suspended due to the high trading volume in his account.
From March 2015 to April 2017, Burrell acquired BTC worth almost $ 3.3 million in more than one hundred transactions.
During this period, he used the Hong Kong Stock Exchange Bitfinex. Over the years, Burrell managed to exchange his US dollars, which he kept in Mexico, with an accomplice Joseph Castillo, a dealer from San Diego who worked with precious metals. Together they brought more than $ 1 million in cash to the United States.
David Shaw, special agent in charge for Homeland Security Investigations in San Diego while commenting on the case, said the following : “Today’s sentencing of Burrell is a reminder to those illegal and unlicensed money transmitters that the laws and rules apply to cryptocurrency dealings just as they do to other types of financial transactions.”
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