A Los Angeles man has pleaded guilty in a new Bitcoin laundering scheme which took away $25 million in Bitcoin (BTC) by selling methamphetamine and laundering money through cryptocurrency.
According to the news outlet US News, Kunai Kaira is the man that has pleaded guilty to charges including money laundering and distributing methamphetamine. The 25 year old man is facing a life sentence in prison because of the Bitcoin laundering scheme.
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As many best cryptocurrency news sites reported, from 2015 to 2017, Kaira exchanged BTC and dollars, ran a Bitcoin ATM as well as admitted to making deals with drug dealers and other criminals.
Kaira sold two pounds of meth to an undercover law enforcement agent. As the report outlined, he also faces money laundering charges in Texas – filed earlier this month. The latest cryptocurrency news have also brought a new case to attention where the United States Department of the Treasury is featured for adding multiple cryptocurrency addresses to its Specially Designed Nationals (SDN) list under the Foreign Narcotics Kingpin Designation Act – known as the Kingpin Act.
So, it is safe to say that this is not the first or last Bitcoin laundering scheme. In July this year, the Treasury Secretary Steven Mnuchin said that the authority will work to prevent Bitcoin from becoming an “equivalent of Swiss-numbered bank accounts.” As the Secretary Mnuchin noted, the government is always looking to combat “bad actors in the U.S. dollar every day to protect the U.S. financial system.”
As HG defines it, the Bitcoin laundering is basically a process where Bitcoin is being used to finance illicit activities. Because of the nature of the coin and its anonymity, it is seen as a felony.
“For over a decade, the Treasury Department has required money transmitters to register with FinCEN, enact controls to prevent Bitcoin laundering, report suspicious financial activity, and obtain state licenses. These measures are mandated by the Bank Secrecy Act, a federal law that serves as the main anti-money laundering statute. There are also a number of other federal laws that ban unlicensed money transmitters,” the source claims.
Despite the fact that proponents argue that BTC should remain unregulated, cases like these keep emerging and it is important to take all factors into consideration.
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