FinCEN Issues First-Ever Civil Penalty Against Bitcoin Exchange

FinCEN Issues First-Ever Civil Penalty Against Bitcoin Exchange 1

The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury, has imposed its first-ever penalty on a peer-to-peer crypto exchange for violating AML regulations, among other violations.

FinCEN announced the penalty on its website on April 18, 2019, declaring that it had levied a civil money penalty against bitcoin trader Eric Powers for “[failing] to register as a money services business (MSB), [having] no written policies or procedures for ensuring compliance with the BSA [Bank Secrecy Act], and [failing] to report suspicious transactions and currency transactions.”

In other words, Powers was acting as an unregistered exchange by carrying out a number of peer-to-peer transactions in crypto assets. In the course of his various peer-to-peer transactions, FinCEN claimed that Powers exchanged a total sum of BTC worth approximately $5 million, carrying out individual transactions worth more than $10,000 over 200 times.

Though FinCEN noted that this is its first enforcement action against a peer-to-peer cryptocurrency exchange, this is not the first prosecution of this sort lately. Earlier this month, Jacob Burrell Campos was charged by the U.S. Department of Justice for similar crimes, acting as an unregistered exchange. A key difference between the two cases, however, is that FinCEN quoted a civil penalty of $35,350 dollars for Powers while Campos was sentenced to two years’ imprisonment. Both men were required to forfeit $100,000 and $800,000 in crypto assets.

The initial sentencing of Campos came with commentary from regulatory officials such as David Shaw, a special agent for Homeland Security investigations in San Diego, who called the trial “a reminder to those illegal and unlicensed money transmitters that the laws and rules apply to crypto currency dealings just as they do to other types of financial transactions,” signaling that the U.S. government would begin prosecuting these financial crimes more harshly.

The FinCEN announcement noted that Powers’s sentence was loosened due to his cooperation with law enforcement, including an agreement “to an industry bar that would prohibit him from providing money transmission services or engaging in any other activity that would make him a ‘money services business’ for purposes of FinCEN regulations.”

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
--- --- --- ---
--- --- --- ---
--- --- --- ---
USD Coin0.9989 0.16 % 0.08 % 0.04 %
--- --- --- ---
--- --- --- ---
--- --- --- ---
Cardano0.9566 0.22 % 0.68 % 6.96 %
--- --- --- ---
--- --- --- ---

bitcoin
Bitcoin (BTC) $ 29,679.00
ethereum
Ethereum (ETH) $ 1,890.32
tether
Tether (USDT) $ 0.999131
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 315.85
xrp
XRP (XRP) $ 0.399048
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.499082
solana
Solana (SOL) $ 46.14
dogecoin
Dogecoin (DOGE) $ 0.0804