21-Year Old Bitcoin Trader Faced With Money Laundering Charges
Jacob Burrell Campos, a 21-year-old Bitcoin trader based in California, has been indicted with charges involving money laundering and illegal money transmission.
The charges filed against the Bitcoin trader
Burrell is currently being charged by the Department of Justice in the Southern District of California with as many as 28 counts of illegal money transmission and money laundering.
After a hearing last week Friday, a statement released by the Department of Justice in the Southern District of California has given orders to hold Jacob Burrell Campos was held without bail on those aforementioned charges.
According to the charges levied against Burrell, he sold Bitcoins amounting to about $750,000 over individuals throughout the United States over a period that stretched from January 2015 to April 2016.
The charges claim that he sold his Bitcoin through an exchange, but was not registered as a licensed money transmitter and did not have appropriate anti-money laundering measures in place.
The charges claim that from February 2015 to February 2016, Burrell allegedly wired at least $900,000 in 30 transactions from his bank accounts to the Hong Kong-based crypto exchange Bitfinex to buy Bitcoin to fund his “illegal” exchange.
Burrell performed these transactions after his own account in the U.S. digital exchange platform, Coinbase, was closed.
According to the announcement, the illegal transactions were conducted in an effort to avoid ID verification processes.
Extra charges levied against Burrell
Aside from the illegal money transmission charges, Burrell is facing a further charge of structuring international instrument transactions to evade reporting, when he tried to smuggle ‘around $1 million’ from Mexico into the U.S.
The prosecutors said in the documentation:
“Burrell’s activities ‘blew a giant hole’ through the legal framework of U.S. anti-money laundering LAWS by soliciting and introducing into the U.S. banking system close to $1 million in unregulated cash.”
According to the announcement made public by the Department of Justice in the Southern District of California, Burrell was ordered to be held without bail at a hearing on Friday in connection to the charges.
By operating an exchange, Burrell ought to report what might have been flagged as “suspicious” activities to the government, this he failed to do.
The prosecutors have announced that if Burrell is convicted on any of the money laundering charges, he stands the chance of spending the rest of his life behind bars.
U.S. Regulators clamp down illegal use of cryptocurrencies
Although the U.S. market has proven to be one of the most influential markets for cryptocurrencies, blockchain projects have had a hard time operating in the country.
In a bid to counterattack the growing menace of the misuse of cryptocurrencies. The U.S. already has in place firm regulations set up by its Securities and Exchange Commission to check the operations of crypto projects in the country.
Similar to Burrell’s case, about 3 weeks ago, a former cryptocurrency trader and exchange operator based in Arizona has been sentenced to 41 months in jail for laundering drugs money with Bitcoin.