$110 Million: BTC-e Fined as US Vows Crackdown on Unregulated Bitcoin Exchanges

TheUS federal government has actually unsealed an indictment versus BTC-e and among its supposed operators, imposing a $110m fine for offenses presumably dedicated by the long-running bitcoin exchange.

Inthe 21- count indictment launched previously this night, the Department of Justice declared that BTC-e and Alexander Vinnik, the Russian nationwide who was arrested earlier today in Greece and later on connected to the long-running exchange, dedicated a shopping list of criminal activities throughout the exchange’s six-year history.

Federaldistrict attorneys declare that BTC-e worked as a cleaning home for illegal funds sourced from “computer intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, and narcotics distribution rings.”

Vinnikwas accuseded of 17 counts of cash laundering and 2 counts of taking part in illegal financial deals. Both BTC-e (by method of a supposed holding business called Canton Business Corporation) and Vinnik were likewise accuseded of one count of running an illegal cash services service and one count of conspiracy to dedicate cash laundering.

Prosecutorseven more declared that Vinnik “gotten funds from the notorious computer system invasion or “hack” ofMt Gox”– echoing claims released earlier today by the independent research study group WizSec, which has actually examined the theft of funds from the now-defunct Japan- based bitcoin exchange.

Accordingto the Department of Justice, the Financial Crimes Enforcement Network (FinCEN) evaluated a $110m civil charge versus BTC-e, as well as a $12m charge versus Vinnik.

Iffounded guilty, Vinnik deals with as lots of as 55 years in jail.

Sternrebuke

But, in revealing the unsealed indictment, federal government authorities released plain cautions to digital currency exchanges.

ActingFinCEN director Jamal El-Hindistated in a declaration:

“We will hold accountable foreign-located money transmitters, including virtual currency exchangers, that do business in the United States when they willfully violate U.S. AML laws.”

Notablymissing from the declarations were signs as to whether the US federal government would relocate to completely shutter the exchange, which simply hours ago saidthat it would go back to service.

Moreinformation on the story, its effect, its connection to the Mt Gox case and its open concerns can be discovered in our most recent feature.

Thecomplete unsealed superseding indictment can be discovered listed below:

Vinnik Superseding Indictment Redacted 0by CoinDesk on Scribd

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