A Bitcoin Trader Condemned For One Year Imprisonement
This happened in the US, California. A Localbitcoins trader was sentenced to one year in prison, the reason being unlicensed money transmitting and money laundering.
The announcement was given on Monday, by the US Department of Justice (DOJ), that Bitcoin Maven, her real name being Theresa Lynn, has been sentenced to one year in federal prison. “‘Bitcoin Maven,’ who admitted to operating an unlicensed bitcoin-for-cash exchange business and laundering bitcoin that was represented to be proceeds of narcotics activity, was sentenced today to 12 months and one day in federal prison, three years of supervised release, and a fine of $20,000.”
The DOJ wrote that the 50-year-old Southern Californian and former stockbroker and real estate investor was condemned by District Judge Manuel L. Real “for conducting an illegal business and engaging in unlawful monetary transactions involving bitcoins.” She “pleaded guilty to one count of operating an unlicensed money transmitting business and one count of money laundering.”
It was revealed by the Justice Department that “Tetley was also ordered to forfeit 40 bitcoin, $292,264.00 in cash, and 25 assorted gold bars that were the proceeds of her illegal activity.”
Last month, news.Bitcoin.com had reported last month that at the time the persecutors had asked the judge to sentence Tetley to 30 months in federal prison.
The case was also investigated by the Drug Enforcement Administration and IRS Criminal Investigation unit. According to the DOJ, Tetley offered bitcoin exchange services without registering with the Financial Crimes Enforcement Network (FinCEN), as a money services business. The justice department also added that she also did not establish “anti-money laundering mechanisms such as customer due diligence and reporting certain transactions required for these types of businesses.”
“Tetley advertised on localbitcoins.com and exchanged, in total, between $6 and $9.5 million for customers across the country, charging rates higher than institutions that were registered with FinCEN.”
“Tetley facilitated laundering for one individual who is suspected of receiving bitcoin from unlawful activity, such as sales of drugs on the dark web,” was the conclusion given by the authority. Moreover, she “also conducted an exchange of bitcoin-for-cash for an undercover agent who represented that his bitcoins were the proceeds of narcotics trafficking.”
