Bitcoin Trader Sentenced to Two-Year Prison Term

Bitcoin Trader Sentenced to Two-Year Prison Term 1

Bitcoin trader Jacob Burrell Campos was sentenced on April 8, 2019, to serve a two-year prison sentence and to forfeit more than $800,000 “for operating an unlicensed money transmitting business.”

The U.S. Department of Justice (DOJ) announced the conclusion of this case on its official website, claiming that Campos had already been in custody without bail for eight months prior to this verdict. He entered a guilty plea in late October, the DOJ stated, “admitting that he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards.”

A Mexican-born, U.S. citizen, Campos moved more than $1 million between the two nations with the help of several associates, all without reporting the transfers. Other than this, however, the majority of the actual crimes the DOJ charged him with involve the running of what is essentially an unlicensed exchange, with no anti-money laundering or due diligence measures.

The DOJ has long shown interest in financial crimes that involve crypto assets and prosecuting criminals using new methods. As early as 2015, for example, when the value of one bitcoin had yet to surpass $1,000, the DOJ hosted a summit for regulators, law enforcement and cryptocurrency stakeholders. Its efforts to stay on top of the crypto industry have persisted ever since, particularly with the department launching an investigation into price manipulation in 2018.

The prosecution’s main argument in the Campos case followed this trend, claiming that “unlicensed money transmitters pose a serious threat to the integrity of the U.S. financial system by creating a hole in the anti-money laundering regulatory scheme and allowing criminals to launder their cash proceeds without scrutiny.”

This verdict sets a clear precedent that a certain threshold of direct peer-to-peer exchanges of crypto for cash can open one up to prosecution.

David Shaw, a special agent for homeland security investigations in San Diego, called the trial a “reminder to those illegal and unlicensed money transmitters that the laws and rules apply to cryptocurrency dealings just as they do to other types of financial transactions,” per the DOJ announcement.

As long as trades are carried out over official exchanges, however, they should remain free of prosecution.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin29,828 0.08 % 0.87 % 2.21 %
Ethereum1,968.4 0.24 % 0.59 % 6.05 %
Tether1.001 0.03 % 0.14 % 0.01 %
BNB329.23 0.29 % 0.31 % 7.40 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
XRP0.4088 0.08 % 0.34 % 6.92 %
Binance USD1.000 0.13 % 0.14 % 0.12 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana48.76 0.20 % 1.79 % 15.08 %
Polkadot10.03 0.38 % 1.50 % 9.25 %

bitcoin
Bitcoin (BTC) $ 29,776.00
ethereum
Ethereum (ETH) $ 1,957.07
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 328.21
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.407738
binance-usd
Binance USD (BUSD) $ 0.999314
cardano
Cardano (ADA) $ 0.517742
solana
Solana (SOL) $ 48.54
polkadot
Polkadot (DOT) $ 10.00