US Department of Homeland Security Arrests Citizen for Unlicensed money exchange business on the P2P trading platform LocalBitcoins.
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It is reported that the 26-year-old Kenneth Rule (KennethRhule) advertised cash exchange services for bitcoins using the LocalBitcoins platform, on which he was registered under the pseudonym Gimacut93, and sold $ 140,000 to Bitcoin undercover agents.
Kenneth Rool has been charged with 8violation of various US laws, including “organizing an illegal business to exchange and transfer money, five cases of money laundering, and one case of the production and sale of marijuana.”
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Office has been working on Rule since April 2018of the year. Agents pretended to be criminals who needed money laundering services, and repeatedly met with Rule about this. At the same time, the agents told him that the money was received from human trafficking, but this did not stop Rule from providing services.
“When conducting transactions, Rul did not askprovide no identification documents. On the contrary, he carried out an exchange even after agents informed him that part of the money was received from human trafficking, and this violates US laws, ”the prosecution said.
Rula is also accused of illegal production andselling marijuana. According to US laws, he can get up to 5 years in prison for an illegal money transfer business, up to 20 years for creating money laundering tools, and up to 40 years in prison for an “herbal” business.
Recently in Japan, two citizens were arrested forpurchase of tokens stolen from the Coincheck cryptocurrency exchange in 2018. The investigation claims that the residents of Hokkaido and Osaka knowingly knew about the illegal origin of the cryptocurrency.