Unlicensed Sales of Bitcoin Can Lead You to Jail: The Story of a 24-Year-Old Man
The United States of America is getting more involved in eliminating the “unlicensed money transmitting in the land for free”. The federal agencies’ latest achievement is the sanction of a 24-year-old young man with jail for the fact that he gained $ 40,000 after unauthorized trades of Bitcoins.
One year and one day in jail for $ 40.000
Eldon Stone Ross, a 24-year-old young man based in Kennett Square received the answer to his fraud actions on 28 February 2018. Thus, he will spend a year and a day in federal prison for trading a significant amount of Bitcoins without reporting it to the US government.
It’s supposed that the young man sold $ 1.5 million in Bitcoin for two years, but only reimbursed $ 40,000, money earned from commissions.
He was convicted for the unlicensed sale and purchase of the most influential cryptocurrency in the world – Bitcoin between January 2015 and November 2016.
Bert Glenn, a U.S. Attorney’s Assistant stated that “We don’t see many of these cases. It’s the first I’ve done here. If people can go to someone like Ross who is dealing outside the institutional market, it adds to their anonymity.”.
Eldon Ross was enabling money laundering
Eldon Stone Ross has confirmed in front of federal agents carrying out a Homeland Security Investigations that he has earned a $ 50,000 income from trading Bitcoins. According to the court records, the young man “failed to obtain identifying information from the agents”.
He was sanctioned by the federal authorities for the simple reason that he did not carry out its activities under the Know-Your-Customer (KYC) procedure and did not report the revenues obtained to the Department of the Treasury. Thus, Ross was convicted as an accomplice in money laundering.
According to the Philadelphia Inquirer, Eldon Stone Ross has already been sentenced to prison for drug dealing. After the new mandate is over, he will be in the next three years under the supervision of local authorities.
US federal agents will continue to carry out investigations to ensure the proper functioning of “Homeland Security”. Their primary purpose is to eliminate unlicensed money transactions as well as money laundering.