An American „Bitcoin Dealer“ has confessed to an illegal business with the digital currency operated. He must leave the state of his winnings in the amount of approximately 725.250 Euro.
In most countries it is a criminal Offence to own Bitcoin. Also in the USA, the possession of Bitcoin is prohibited as is its use. It is different when you make the purchase and sale of the crypto-currency is a business, and „failed“, this is to notify the authorities. The American Jacob Burrell Campos has done just that – and in front of the national court in San Diego as a guilty plea. This is evident from a notice from the U.S. Department of justice.
Anonymous Bitcoin Deals
Burrell has admitted to have between January 2015 and April 2016 Bitcoin, worth several hundred thousand dollars to over a Thousand customers sold. Burrell carried out his business with the assistance of MoneyGram, Bitcoin ATMs, and cash. This allowed his Bitcoin-to-purchase buyers of the digital currency anonymously. The anonymity had its price: A Bitcoin cost with Jacobs five percent more than (legal) Bitcoin exchanges. Jacobs made on Localbitcoins.com even advertising for his business, for he of money laundering act (AML) cared neither to KYC (Know Your Customer) to the Anti -.
No wonder, then, that the windy business model popped up on the Radar of the US-American Ministry of Finance. Jacob had to leave his Business, namely in its network to combat financial crime register. That would have been for the 21-year-old Bitcoin Dealer Jacobs, however, is a compelling account of KYC and AML means – and From for his business. A business that is a threat to the American banking system, argues the competent state’s attorney Adam Braveman:
„unlicensed money transmission businesses, in particular those that are on or in the vicinity of the border, pose a serious threat to the integrity of the US banking system, and offer Criminals an ‚open door‘ in order to use these businesses to launder the proceeds of their illegal activities.“
accomplice in the precious metal-Business
First of all, Burrell earned his Bitcoin to a (in particular, not mentioned) crypto-stock exchange in the United States. Due to a high number of „suspicious transactions“ disabled this, however, Burrells account already after a short period of time. In the result, Burrell left for a crypto stock exchange in Hong Kong. There, he acquired between March 2015 and April 2017 Bitcoin in a total of 3.29 million dollars.
Burrell kept his dollars in Mexico. With the money-Burrell did business with a U.S.-based precious metal dealer by the name of Joseph Castillo, a San Diego resident. In order to stay under the Radar of the US tax authority, the IRS, not to exceed the individual transactions between Burrell and Castillo the reportable amount of $ 10,000. Also Castillo is a confession. He admitted to have in his / her tax Declaration of false information. The judgment in the case Castillo is on 12. December like.
Burrell has to wait, however, for just a little longer. His judgment is for the 11. February 2019 scheduled. He has stated in his confession ready to pay his due to the operation of the Bitcoin-trading profits earned in the amount of 823.357 dollars to the state Treasury. In addition, a money penalty in the amount of up to $ 250,000 and five years in prison the 21-Year-old.