US authorities have convicted a New York man of money laundering and operating an unlicensed money transmitting business to launder cryptocurrency-based drug trafficking proceeds.
Through undercover operations in 2018, US Drug Enforcement Administration (DEA) agents identified the convict as providing bitcoin to fiat currency exchange services. An undercover agent met with the convict and the two engaged in seven bitcoin to cash exchanges over a nine-month period. The convict continued providing these services even though the undercover agent had made it clear that the bitcoin was sourced from illegal drug trafficking activity. For each transaction, the convict retained a 7-8% commission and provided the remaining amount in cash.
This mission ended with the convict’s arrest in 2019. The convict could receive up to 25 years in jail.
Source: US Department of Justice
