Latest Update from Bitcoin Exchange BTC-e: 3 Stages of Service Relaunch
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The announcement was made by U. Lerner; and Acting Director of the Bitcoin btce. HSI will bitcoin btce to aggressively target those who deliberately seek to exploit financial systems for personal gain. Vinnik is alleged to have committed and facilitated a wide range of crimes that go far beyond the lack of regulation of the bitcoin exchange he operated.
When there is no regulation and criminals are left unchecked, this scenario is all too common. The takedown of this large virtual currency exchange should send a strong message to cyber-criminals bitcoin btce other unregulated exchanges across the globe. This was a highly complex investigation that has only reached this stage due to the persistent and dedicated efforts of all the parties involved.
We must continue to impose real costs on criminals, no matter who they are or where they attempt to hide. The indictment further alleges that proceeds from well-known hacks and thefts from bitcoin exchanges were funded through a BTC-e administrator account associated with Vinnik. Vinnik was arrested in Greece bitcoin btce July The indictment alleges that although Bitcoin has known legitimate uses, the virtual currency, like cash, can be used to facilitate illicit transactions and to launder criminal proceeds.
According to the bitcoin btce, since its inception, Vinnik and others developed a customer base for BTC-e that was heavily reliant on criminals, including by not requiring users to validate their identity, obscuring and anonymizing transactions and source of funds, and by lacking any anti-money laundering processes. The indictment alleges BTC-e was operated to facilitate transactions for cybercriminals worldwide and received the criminal proceeds of numerous bitcoin btce intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, bitcoin btce narcotics distribution rings.
Thus, the indictment alleges, BTC-e was used to facilitate crimes ranging from computer hacking, to fraud, identity theft, tax refund fraud schemes, public corruption, and drug trafficking. Gox — an earlier digital currency exchange that eventually failed, in part due to losses attributable to hacking. The indictment alleges that Vinnik obtained funds from the hack of Mt. Gox and laundered those funds through various online exchanges, including his own BTC-e and a now defunct digital currency exchange, Tradehill, based in San Francisco, California.
The indictment alleges that by moving funds bitcoin btce BTC-e, Vinnik sought to conceal and disguise his connection with the proceeds from the hacking of Mt.
Gox and the resulting investigation. As for defendant BTC-e, the indictment alleges that, despite doing substantial business in the United States, BTC-e was not registered as a money services business with the U. The exchange allegedly maintains a base of operations in the Seychelles Islands bitcoin btce its web domains are registered to shell companies in, among other places, Singapore, the British Virgin Islands, France, and New Zealand.
The indictment charges BTC-e and Vinnik with one count of operation of an unlicensed money service business, in violation of 18 U. In addition, bitcoin btce indictment charges Vinnik with seventeen counts of money laundering, in violation bitcoin btce 18 U. An indictment merely alleges that crimes bitcoin btce been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. Additional fines, restitution, and supervised release also may be ordered.
However, bitcoin btce sentence will be imposed by the court only after consideration of the U. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U. Bitcoin btce case is being prosecuted by the U. You are here U. Wednesday, July 26, Violation Statute Maximum Penalty operation of an unlicensed money service business 18 U. Download Vinnik Superseding Indictment Redacted.
