An individual aged 22 in the United States has been sentenced to prison to two years the reason being for selling hundreds of thousands of dollars in bitcoins through a money transmitting business which is not licensed. Jacob Burrell Campos was forced to charge almost 823,357 US dollars and also been in custody without bail for illicit profits.
He begged guilty for operating a bitcoin exchange without proper registration. He also revealed that he had no link with the anti-laundering procedures. Registration is done by the Financial Crimes Enforcement Network which is famously known as Fincen, from the US Department of Treasury. A special agent who is in charge of Homeland Security of Investigation in San Diego said that today is Jacob’s sentencing which is a reminder to the people who are involved in unlicensed and illegal money transmitters that the rules apply to Bitcoin dealings as to do other transactions of financials.
Jacob advertised his unlicensed business on LocalBitcoins.com. He also communicated with some of the customers through texts and emails which are encrypted applications or the files. He made an arrangement of 5 percent as the commission for the exchange rate and also accepted the cash for payments in person which is through ATM’s and Money Gram. Finally, he revealed that he failed to have a KYC program and told he didn’t perform any of the due diligence on the reference of client’s funds.
Jacob purchased his supply of Bitcoin by using a regulated exchange firm of US, but his account was closed due to the high volume of trading exchange. Jacob turned to a cryptocurrency exchange in Hong Kong. He bought 3.29 million US dollars as digital money in Hong Kong where it crosses thousands of transaction from 2015 to 2017. And then he exchanges his bitcoins cash and stored in Mexico. He stored the cash with a San Diego dealer named Joseph Castillo.
Jacob admitted that he and other imported the bitcoins into the US. The transaction is of almost 1 million dollars on a daily basis. The increase of cryptocurrency costs, together with bitcoin, ethereum, and altcoins, might are for the most part caused by value operation, per a paper printed these days by investigators at the University of TX at the state capital. The daily news, co-authored by a business academic UN agency is thought for gathering deception in money marketplaces, discloses many separate designs in commercialism that counsel many folks or someone at the key cryptocurrency exchange Bitfinex exaggerated virtual coin prices.
