Crypto Analyzer

Founder and Majority Owner of Cryptocurrency Exchange Charged with Processing Over $700 Million in Illegal Transactions

The majority owner and founder of a cryptocurrency exchange was charged with processing illegal transactions totalling more than $700,000,000.

A press release issued by the United States Department of Justice (DOJ), stated that the individual was charged with operating a unlicensed money-transfer business and conspiring in money laundering. According to the DOJ, the individual was accused of using their cryptocurrency exchange to facilitate transactions for criminals involved in drug trafficking, fraud, and other illegal activities.

He is also accused of failing implement anti-money laundering control (AML), on his exchange. Federal law requires all money transfer businesses to comply with this requirement. The DOJ alleges that the individual knew the exchange was being used to facilitate illicit activities, but ignored the warnings and continued processing transactions. The news about the charges caused a substantial drop in the Bitcoin price, which fell to $20,777 from $800 before it was even known. The Bitcoin price previously reached a daily peak of $21,650.

The person could face up to 20 year imprisonment for the money laundering conspiracy and up to 5 years for the charge that he or she operated a unlicensed money transmitter business.

This case is a reminder about the importance of complying with AML laws for cryptocurrency trading platforms and businesses dealing in digital assets. It highlights the need for tighter regulation and oversight in the cryptocurrency industry to protect consumers from illegal activities.

This is just one of many recent cases where the U.S. authorities have taken action against illegal activities related cryptocurrency. The U.S. government is becoming more vocal in its efforts against illicit activities related to digital assets. This includes money laundering and terrorist financing. In recent years, the cryptocurrency industry has seen an exponential growth and regulatory oversight has become more important.

It is unclear what will happen with the exchange and its customers. However, this case serves as a warning for other crypto-related exchanges to ensure compliance with laws and regulations.