Anthony R. Murgio, Running Unlicensed Bitcoin Exchange, New York 2015
Two Florida men are behind bars following a scheme to operate an unlicensed Internet Bitcoin exchange, authorities announced today.
Anthony R. Murgio and Yuri Lebedev, both of Florida, were arrested at their residences and are expected to be presented in federal court in the Middle District of Florida.
According to the allegations, Murgio, Lebedev, and their co-conspirators have knowingly operated Coin.mx, a Bitcoin exchange service, in violation of federal anti-money laundering laws and regulations since at least late 2013. The service allowed customers to exchange cash for Bitcoins, charging a fee for their service.
The defendants allegedly enabled their customers to exchange cash for Bitcoins, knowing that the individuals may be engaging in criminal activity. In doing so, they also knowingly exchanged cash for Bitcoins for victims of ransomware attacks, enabling the criminals responsible for those attacks to receive the proceeds of their crimes.
In total, between approximately October 2013 and January 2015, Coin.mx exchanged at least $1.8 million for Bitcoins on behalf of tens of thousands of customers. Murgio transferred hundreds of thousands of dollars to bank accounts in Cyprus, Hong Kong, and Eastern Europe, and received hundreds of thousands of dollars from bank accounts in Cyprus and the British Virgin Islands, in furtherance of the operations of his unlawful business.
Murgio and Lebedev engaged in substantial efforts to evade detection of their scheme by operating through a phony front-company, 'Collectables Club,' and maintaining a corresponding phony 'Collectables Club' website. The defendants also obtained beneficial control of a New Jersey-based federal credit union and transferred Coin.mx's banking operations to the Credit Union.
The National Credit Union Administration eventually forced the Credit Union to cease engaging in payment processing activity, and Murgio found new, overseas payment processing channels for his unlawful business.
The defendants are charged with operating an unlicensed money transmitting business, conspiracy to operate an unlicensed money transmitting business, and willful failure to file suspicious activity reports. The charges carry a maximum sentence of five years in prison.
Mandatory Facts:
Defendant: Anthony R. Murgio
Criminal Charges: Operating an Unlicensed Money Transmitting Business, Conspiracy to Operate an Unlicensed Money Transmitting Business, and Willful Failure to File Suspicious Activity Reports
City and State: Florida
Date: October 2013 - January 2015
Sentence: Currently pending
Dollar Amount: $1.8 million
Key Facts
- State: New York
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →