Bitcoin Dealer Indicted in San Diego With Money Laundering Charges
A Bitcoin dealer from Baja California has been indicted with international money laundering crimes that are related to cryptocurrency transactions. The individual is Jacob Burrell Campos, from Rosarito, and has been arrested on Monday after he tried entering the United States from Mexico.
After a hearing on Friday in the federal court in San Diego, the Assistant U.S.Attorney Robert Ciaffa said that Burrell was selling Bitcoin to hundreds of different buyers in the United States. Apparently, the transactions were valued at about $750,000 dollars.
According to the accusations, he conducted 971 transactions with more than 900 customers in the United States accepting cash in person, in his bank accounts or via MoneyGram.
Due to the fact that he was working as a ‘Bitcoin exchanger’ his activities should be registered with the U.S. Department of Treasury and comply with the anti-money laundering (AML) requirements. It is always important to inform cash transactions that are made in order for them not to luck suspicious.
Burrell did not comply with this point. He was accepting cash without asking any questions. He was applying a 5% fee to an large number of individuals that tried to launder money. Indeed, his clients were able to evade money laundering laws that were applicable to financial institutions.
The activities carried out by Mr. Burrell introduced $1 million dollars in unregulated cash to the United States and the banking system.
As per the indictment, Burrell was charged with 28 counts of money laundering after sending 28 wire transfers valued at $900,000 dollars from the United States, to bank accounts in Taiwan, with the name of Bitfinex.
At the same time, he was able to smuggle $1 million dollars into the U.S from Mevxico in lower amounts than $10,000 dollars.
In sum, and according to San Diego Union Tribune, he has been accused of operating an illegal money transmitting business, international money laundering and conspiracy to structure monetary transactions.
The judge said that Burrell poses a substantial risk of flight because he has significant ties to Mexico, citizenship in three countries, access to cash and lack of employment in the US.