In the United States, a cryptocurrency trader was convicted for running an illegal money-transfer business that used Localbitcoins or Paxful. The maximum sentence is five years imprisonment in federal jail and possible $250,000 fine.
The Crypto-Trader Pleads Guilty
U.S. Department of Justice continues to pursue action against cryptocurrency traders who use services like Localbitcoins or Paxful to purchase and sell crypto currencies as an unlicensed business. Hien Nac Vo (a 49-year old man hailing from Seattle in Washington) was recently charged with operating a non-licensed crypto-business in Houston, Texas.
Vo pleaded guilty Wednesday to operating an illegal money-transfer business in Houston between March 16th and June 8th 2016. According to the Department of Justice, this is how it was described:
Vo used Paxful and Localbitcoins to buy and sell bitcoin … He profited from sales by collecting a percentage of the transactions which ranged from 5-30%.
Within the three months specified, Vo’s unlicensed business received and transmitted approximately $515,147.19 in BTC, the DOJ described, adding that customers paid him in cash, direct bank deposits, American Express credit cards as well as Amazon and generic gift cards.
However, “During the transactions, Vo did not ask clients for any form of identification nor the purpose for which they were purchasing the cryptocurrency,” the Justice Department noted.
The DOJ stated that Vo was allowed to stay on bond until sentencing on September 5.
Vo could spend up to 5 years in Federal Prison and face a $250,000 Maximum Fine.
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