A Bitcoin trader and dealer from California is facing prosecution for allegedly committing many illegal activities, that span illicit transmission of money laundering activities.
The trader, Jacob Burell Campos (21) was ordered to be held without bail by the Department of Justice in the Southern District of California, about the charges leveled against him.
The prosecutors accused Jacob of selling $750,000 worth of Bitcoin from 900 individuals between January 2015 to April 2016, through his Bitcoin exchange services. The documents indicating the accused revealed that the trader did not register the exchange as a licensed money transmitter, and broke all the laws of the state, by intentionally failing to implement anti-money laundering measures, during the various business transactions. As a result of this, Jacob faces a one count charge of money laundering, and a one count charge for illegal money transmission as well.
To buttress their case and make it worthwhile, the prosecutors claimed that Jacob, during this period committed a total number of 28 counts of international money laundering. Mr. Burrell allegedly wired money in the tune of $900,000 between Febuary 2015 to Febuary 2016, in over 29 transactions from his accounts in the United States, to Bitfinex, a Hong Kong-based crypto exchange to buy Bitcoin.
Jacob was also alleged to have intentionally conducted the transfer to avoid ID verification processes after his trading account with US-based crypto exchange Coinbase was closed down. A statement from the prosecutors read,
“Burrell’s activities ‘blew a giant hole’ through the legal framework of U.S. anti-money laundering laws by soliciting and introducing into the U.S. banking system close to $1 million in unregulated cash.”
The case against Mr. Burell is a double-edged sword; as the Bitcoin trader is also accused of structuring international instrument transactions to evade reporting, the atrocity was said to have been committed when he was trying to smuggle around $1 million from Mexico into the United States.
This is just one out of many cases of fraud and scam that has plagued the cryptocurrency world. Nevertheless, the lad is on the verge of losing all he has ever worked for and a possible jail term.