According to a press release of the Ministry of justice, the defendant in Federal court, pleaded guilty to carrying out exchange transactions without an appropriate license. Jacob Burrell Campos used LocalBitcoins.com not registering their business in the US Treasury Department. In addition, it has not carried out the necessary procedure of verifying the source of money, as the law requires AML. The defendant admitted that from January 2015 to April 2016 has helped over thousands of customers convert dollars to bitcoins. The Ministry of Justice described the violation as an illegal exchange of bitcoins.
The press release says that Berrell advertised services on LocalBitcoins, after which he negotiated the deal for a fee in the amount of 5 percent of the amount. In this case, for communication with customers, he used an encrypted email or instant messengers. He reportedly took the cash in person, through ATMs or MoneyGram transfers.
Burrell also confirmed that its account of an unnamed cryptocurrency exchange regulated in the United States were frozen after checking on “suspicious” transactions. He then moved to Hong Kong a platform through which from March 2015 to April 2017 bought bitcoins in the amount of 3.29 million individual transactions. Cointelegraph writes that the sentence to be handed down Burrello 11 Feb 2019. He’s facing a prison sentence of 5 years. In his confession, he agreed to compensate the Treasury 800 thousand dollars.
The document also refers to the recognition of Burrell that he had obtained the Fiat money in Mexico, and exchanged them from a dealer of precious metals of San Diego Joseph Castillo. He now awaits sentencing for hiding income and tax evasion. More data look at cryptodata.
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