Louis Ong, an unlicensed bitcoin trader, was pronounced guilty and incarcerated for twenty days in a US jail. The Federal agents set up a covert operation to capture Ong. Besides serving jail time, Ong has been ordered to return 1.1 million of cash which he siphoned off illegally.
The United States of Homeland Security grew suspicious of Louis’s illegal activity two years ago in 2016 when he put up an advertisement about bitcoin trading. The frenetic business and the exorbitant bitcoin sale drew attention from Feds. At one point he agreed to be part of Federal anti-money laundering force and vowed to put an end to his unlicensed trading activities. He breached the trust of Federal authorities and resumed his illegal trading with full vigor and enthusiasm. He was arrested in July 2017 on charges of money laundering and operating an unregistered money transmission activity. Ong laundered close to $290,000.
The postal inspector to the court issued a statement, “Based upon my training and experience; I know that this is a substantially higher service fee than that charged by legitimate, (Treasury Department)-licensed bitcoin exchanges.” The Department of Homeland and Security has been keeping a close eye on domestic bitcoin traders since 2016. It got the constant push David Burchard was caught for illegally selling marijuana using Tor. More arrests were made when enforcement agencies like Federal Bureau of Investigation got involved in the tracking of unlicensed bitcoin traders. In 2017, Missouri resident Jason Klein was nabbed for selling roughly $75,000 worth of bitcoin to undercover FBI agents.
The United States Treasury Department categorized bitcoin trading as “money service business.” The unlicensed trade of cryptocurrencies is considered illegal and warrants arrest.
Image via WHEN MOON
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