Jul 17, · LocalBitcoins trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the crypmoney.de trader has been sentenced to 12 months in prison. She has also been handed a three-year supervised release and a $20, fine. May 29, · Another LocalBitcoins cryptocurrency trader has found himself on the wrong side of US law enforcement. According to the US Attorney’s Office for the Southern District of California, Morgan Rockcoons has been sentenced to 21 months in federal prison for conduction operations on the site, including a real estate fraud scheme that involved Bitcoin Core (BTC). However, he is just another LocalBitcoins trader to get on the radar of local law enforcement, later getting jail time. Even though he was first arrested in , Rockoons was released on bail after that and went on to promote Bitcointopia (which was an illegal real .
Localbitcoins trader arrestedIndicted: Localbitcoins Trader Jailed for Money Laundering - CoinCentral
Her case is the first of its kind in the Central District of California. Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury. The agency is responsible for analyzing transactions to curb money laundering and related financial crimes.
She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business. Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web. She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.
That said, the government has been committing significant resources to counter the crypto — dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network.
Thirty-five suspects were arrested. Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme. He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.
Featured Image Credit: Mercury News. This article is still…. In April, an Arizona-based bitcoin trader was arrested and held following a police raid. Jail image via Shutterstock. Read more about Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups.
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