Jacob Burrell Campos, a 21-year-old Bitcoin dealer from Rosarito, Baja California, Mexico, has pleaded guilty to operating an unlicensed money transmitting business in San Diego, California.
According to the terms of his plea agreement, Campos admitted to operating a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards.
Campos advertised his business on Localbitcoins.com, and communicated with his customers through email and text messages, often using encrypted applications. He negotiated a commission of 5% above the prevailing exchange rate, and accepted cash in person, through nationwide ATMs, and through MoneyGram.
Campos admitted that he had no anti-money laundering or “know your customer” program, and performed no due diligence on the source of his customers’ money.
According to his plea agreement, Campos agreed to forfeit to the United States a total of $823,357.00.
“Unlicensed money transmitting businesses, especially those operating at or near the border, pose a serious threat to the integrity of the US banking system, and provide an ‘open door’ for criminals to utilize such businesses to launder the proceeds of their illicit activities,” said U.S. Attorney Adam Braverman.
“The US Attorney’s Office will continue to investigate and prosecute all individuals and businesses that seek to evade the licensing and anti-money laundering requirements under federal law,” Braverman added.
Campos will be sentenced on February 11, 2019, and faces a maximum of five years’ imprisonment, along with a fine of $250,000.
The investigation was conducted by Homeland Security Investigations, Internal Revenue Service, and Postal Inspection Service.
Key Facts
- State: California
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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