Localbitcoins User Pleads Guilty to Running Unlicensed Crypto Business — Faces Up to 5 Years in Prison

A cryptocurrency trader has been convicted successful the U.S. for operating an unlicensed money-transmitting concern utilizing Localbitcoins and Paxful. He faces up to 5 years successful national situation and a imaginable $250,000 maximum fine.

Crypto Trader Pleads Guilty

The U.S. Department of Justice (DOJ) continues to instrumentality enactment against crypto traders utilizing services specified arsenic Localbitcoins and Paxful to bargain and merchantability cryptocurrencies arsenic a concern without a license. The latest specified lawsuit progressive Hien Ngoc Vo, a 49-year-old antheral from Seattle, Washington, who operated an unlicensed crypto concern successful Houston, Texas.

The DOJ announced Wednesday that Vo has pleaded blameworthy to moving an unlicensed wealth transmitting concern successful the Houston country betwixt March 16 and June 8, 2016. The Department of Justice detailed:

Vo utilized Paxful and Localbitcoins to bargain and merchantability bitcoin … He profited from income by collecting a percent of the transactions which ranged from 5-30%.

Within the 3 months specified, Vo’s unlicensed concern received and transmitted astir $515,147.19 successful BTC, the DOJ described, adding that customers paid him successful cash, nonstop slope deposits, American Express recognition cards arsenic good arsenic Amazon and generic acquisition cards.

However, “During the transactions, Vo did not inquire clients for immoderate signifier of recognition nor the intent for which they were purchasing the cryptocurrency,” the Justice Department noted.

Noting that Vo is permitted to stay connected enslaved pending sentencing connected Sept. 5, the DOJ concluded:

Vo faces up to 5 years successful national situation and a imaginable $250,000 maximum fine.

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