Bitcoin 

US Man Pleads Guilty to Running $25 Million Bitcoin Laundering Scheme

A Los Angeles man pleaded guilty to running a $25 million Bitcoin (BTC) money laundering scheme and sale of methamphetamine. Possible life sentence News outlet U.S. News reported on Aug. 23 that 25-year-old Kunal Kalra has pleaded guilty to charges including money laundering and distributing methamphetamines. Per the report, he could be sentenced to life in prison. The authorities allegedly claim that from 2015 through 2017 Kalra exchanged BTC and dollars, ran a Bitcoin ATM and admitted to making deals with drug dealers and other criminals. Sold meth to an…

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Bitcoin 

Dark Market Drug Dealers Plead Guilty, Forfeit Crypto Proceeds

A couple operating out of Merced, California have pleaded guilty to selling drugs on the dark web in exchange for cryptocurrencies, including Bitcoin (BTC) and Bitcoin Cash (BCH). The United States Department of Justice announced the charges in a press release on Aug. 6. According to the announcement, Jabari Monson has pleaded guilty to conspiring to distribute controlled substances, while Saudia Monson plead guilty to violating the Travel Act. Saudia allegedly used both mail and the internet to distribute controlled substances.  According to the press release, the Monsons distributed cocaine,…

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Blockchain 

‘Chems_USA’ Pleads Guilty to Bitcoin-Enabled Dark Web Opioid Conspiracy

A Florida man has pled guilty to participating in a multi-million dollar Bitcoin-enabled drug dealing conspiracy and money laundering. According to a July 25 press release from the U.S. Attorney’s Office of the Southern District of New York, the defendant, Richard Castro, pled guilty to money laundering and to conspiracy to distribute three controlled opioid substances over both the dark web and via encrypted emails. Castro — who operated under multiple monikers, such as “Chems_usa,”“Chemical_usa” and “Jagger109” — sold narcotics for Bitcoin (BTC) and has agreed to forfeit $4,156,198.18, including…

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Bitcoin 

CabbageTech Crypto Scheme Operator Pleads Guilty to Wire Fraud

46-year-old New York resident Patrick McDonnell admitted to stealing funds obtained from his clients instead of investing them in cryptocurrency, Bloomberg reports on June 21. Per the report, McDonnell — who calls himself the “coyote of Wall Street” — pleaded guilty to wire fraud on Friday in federal court in Brooklyn. He allegedly declared: “I claimed to invest it in virtual currency and spent it on personal expenses.” McDonnell attracted investors to his firm CabbageTech by claiming on social media to have traded over $50 million worth of bitcoin (BTC)…

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Bitcoin 

Two Men Plead Guilty to Selling Drugs for Crypto and Laundering $2.8 Million

Manhattan District Attorney Cyrus R. Vance announced on April 23 that two men plead guilty for illicitly selling steroids and controlled substances and laundering millions of dollars in cryptocurrencies and Western Union payments. Callaway Crain, 35, and Mark Sanchez, also 35, were allegedly behind the darknet website “NextDayGear,” and also manufactured some of the substances they sold. Among their products were reportedly injectable and oral steroids, as well as medication to counteract the adverse effects of their use, including Xanax, Valium and Viagra. Per the announcement, the defendants shipped over…

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Bitcoin 

A Guilty Verdict, Impatient Creditors and a Resurrecting Movement: Mt. Gox Saga Continues

It is one of the biggest cryptocurrency hacks of all time and still remains the biggest Bitcoin (BTC) hack the world has ever seen. The 2011, a security breach on Mt. Gox’s platform, the now-defunct Japanese cryptocurrency exchange, saw 850,000 Bitcoin stolen. Although 200,000 BTC have since been recovered, the subsequent closure of the exchange in 2014 left 24,000 creditors in its wake. Eight years later, the story continues with its villainized ex-CEO, Mark Karpeles, at the forefront and creditors still in the dark as to what a payout agreement…

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Bitcoin 

Crypto AriseBank CEO Pleads Guilty to Deceiving Investors in $4.2 Million Case

The former CEO of reported cryptocurrency scam AriseBank has pleaded guilty to defrauding victims of over $4.2 million, Texas-based daily news outlet Dallas News reported March 21. Jared Rice, whom the FBI arrested over securities and wire fraud in November last year, confessed to his activities, according to an announcement by the United States Attorney for the Northern District of Texas, Erin Nealy Cox. Rice had allegedly falsely claimed that AriseBank could offer customers “FDIC-insured accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency…

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Bitcoin 

Japanese Court Finds Ex-Mt. Gox CEO Guilty of Record Tampering

Mark Karpeles — the former CEO of the now-defunct Bitcoin (BTC) exchange Mt. Gox — has received a suspended jail sentence after being found guilty of tampering with financial records. The news was reported by Bloomberg on March 15. The Tokyo District Court has reportedly found Karpeles guilty of mixing his personal finances with those of the exchange in order to conceal the platform’s losses to hackers. He received a two and a half years jail sentence, which he will not have to serve unless he commits another offence within…

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Bitcoin 

Market Maker Due $11.5 Mln Settlement From Quoine After Guilty Ruling on Reversed Trades

Electronic market liquidity provider B2C2 has won its case against Singapore cryptocurrency exchange Quoine and could claim now over 3,000 Bitcoin (BTC) ($11.5 million), local English-language daily news outlet Business Times reported on March 14. The dispute, which saw Singapore’s first cryptocurrency court case begin last November, involves trades made by B2C2 on Quoine’s platform in April 2017. At the time, Quoine was experiencing what it describes as technical difficulties, which resulted in temporary major liquidity problems. As such, B2C2 was able to place Bitcoin (BTC) to Ethereum (ETH) trades…

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Blockchain 

CEO of Crypto City Project Bitcointopia Pleads Guilty to Selling Land He Didn’t Have

Morgan Rockcoons, also known as Morgan Rockwell, has pleaded guilty to two cryptocurrency-related charges in San Diego federal court this week. Rockcoons admitted both to selling land he didn’t have for a crypto city project dubbed “Bitcointopia” and to operating a money transmitting business without a license, daily news outlet the Los Angeles Times (LA Times) reported on March 8. Per the report, Rockcoons first attracted the attention of law enforcement in 2015 with his Bitcoin (BTC)-fiat currency exchange services, which he advertised online. The LA Times reports that under…

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