US Bitcoin Trader Convicted For Illegal Money Transmission And Laundering
The US government has disrupted individuals using the Localbitcoins platform of peer-to-peer. This week, an Arizona resident named Thomas Costanzo was convicted of money laundering involving secret transactions over $ 164,000.
Two years worth of BTC transactions are investigated
The United States Attorney’s office from Arizona County and the Justice Department sentenced a businessman named Thomas Costanzo (AKA Morpheus) to BTC over $ 164,000 on Localbitcoins. Officials asked the investigation began more than two years of transactions. Last year in April, news broke. Botcoin.com reported on Costanzo’s home being hacked and when he was detained by the Department of Homeland Security on April 20, 2017. At the time of transmission Local remarks suggest that charges against Costanzo stemmed from a nationwide anti-money laundering crackdown by US federal agencies.
Besides Localbitcoins Costanzo also ran his secret sales and prosecutors charged him with five counts of money laundering on March 28, 2018.
“In advertising, Costanzo advertised that he was willing to participate in cash transactions of up to $ 50,000,” explains the Arizona Attorney’s Office.
When federal agents secretly approach Costanzo and tell him that they are drug dealers, Costanzo has provided them with a weapon and tells them that it is a great way to limit their exposure to law enforcement.
United States Federal Bureau of Investigation Against Money Laundering
The next detailed report that Costanzo received about $ 164,700 in cash from secret agents. Law enforcement also claims Costanzo uses bitcoin to buy drugs through the internet. Transactions under the AML / KYC law typically account for 1-2% per transaction and Costanzo officials charge between 7% and 10% on peer transactions.
According to the authorities, the investigation was conducted by the IRS, DEA, ICE, National Security, US Postal Service and Arizona local police forces. Costanzo will face the verdict of G. Murray Snow District Court on June 11, 2018. All five money laundering cases can cost Costanzo about 20 years in prison, a $ 250,000 fine or both. Furthermore, the Law Offices explained that some bitcoins were confiscated in the case as well as by foreclosure. There have been similar money laundering cases in the United States where federal agencies have accused people of illegally trading with bitcoin cryptocurrency.