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.
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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“Therefore, these should be registered with the Commission and necessary disclosures need to be made for the protection of the investing public," the draft notes.In February this year, CEZA announced a new set of rules governing digital asset token offerings, designed to regulate the industry and protect investors against acquisition of utility and security tokens.
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US Treasury Sanctioned Major North Korean Hacker Groups For Cyberattacks
“Treasury is taking action against North Korean hacking groups that have been perpetrating cyber attacks to support illicit weapon and missile programs. [...] We will continue to enforce existing U.S. and UN sanctions against North Korea and work with the international community to improve cybersecurity of financial networks.”In August this year, many best cryptocurrency news sites talked about the US Treasury and its attempts to sanction hacker groups. The news also reported that the United Nations claimed that North Korea had netted around $2 billion by hacking banks and cryptocurrency exchanges. The UN Security Council North Korea Sanctions Committee also came up with a statement, saying that these hackers formed an essential part of the government's funding, reporting the following:
“Democratic People’s Republic of Korea cyber actors, many operating under the direction of the Reconnaissance General Bureau, raise money for its WMD (weapons of mass destruction) programs, with total proceeds to date estimated at up to two billion US dollars.”On September 1 this year, we also reported that the North Korea official state media denied allegations of massive theft by North Korean agents. The KCNA cited a statement from the National Coordination Committee of the DRPK which accused the US and other hostile forces of spreading slanderous rumors. The statement read:
“Such a fabrication by the hostile forces is nothing but a sort of a nasty game aimed at tarnishing the image of our Republic and finding justification for sanctions and pressure campaign against the DPRK.”The statement also added that the UN is "re-enacting the same old trick as the fascist propagandists of Hitler used to use."
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