This week, it was announced that 21-year-old Jacob Burrell Campos was charged in a 31-count indictment and ordered held without bail. The defendant was charged with operating an illegal money transmitting business, failing to maintain an anti-money laundering program, conspiracy to structure monetary transactions and international money laundering. Burrell was arrested in August when attempting to enter the United States from Mexico.
Statement made in court allege that Burrell was a prolific Bitcoin dealer who sold roughly $750,000 worth of Bitcoin to hundreds of buyers throughout the United States. The defendant conducted 971 separate transactions with more than 900 individuals. He accepted cash in person, through bank accounts and through MoneyGram. It is alleged that Burrell operated as a Bitcoin “exchanger” and his activities constituted a “money transmitting business”.
Therefore, Burrell would have been required to register with the Department of Treasury and comply with all anti-money laundering requirements. The defendant has also been charged with 28 counts of international money laundering. The indictment accuses Burrell of sending 28 wire transfers worth more than $900,000 from his bank accounts in the United States to an account in Taiwan in the name of Bitfinex. Bitfinex is a cryptocurrency exchange in Hong Kong.
Burrell began using Bitfinex after his Coinbase account was closed for failing to complete the ID verification process. Further details have been made available here.