A cryptocurrency trader has been convicted in the US for operating an unlicensed money transfer business using Localbitcoins and Paxful. He faces up to five years in federal prison and a possible fine of up to $250,000.
Crypto Trader Pleads Guilty
The U.S. Department of Justice (DOJ) continued to take action against crypto traders who use services such as Localbitcoins and Paxful to buy and sell cryptocurrency as a business without a license. In the latest case, Hien Ngoc Vo, a 49-year-old man from Seattle, Washington, ran an unlicensed crypto business in Houston, Texas.
The Department of Justice announced Wednesday that Vo pleaded guilty to operating an unlicensed money transfer business in the Houston area between March 16 and June 8, 2016. Details from the DOJ are as follows.
Vo used Paxful and Localbitcoins to buy and sell bitcoins … He profited from the sales by charging a percentage of the transactions, which ranged from 5-30%.
During the specified three-month period, Vo’s unlicensed business received and sentapproximately $515,147.19 in BTCThe DOJ found that customers paid him in cash, direct bank deposits, American Express credit cards, Amazon and general gift cards to pay him, he explained.
However, the DOJ noted that “during the transaction, Vo did not ask the customer about his identity or his purpose for purchasing the cryptocurrency.”
Noting that Vo is allowed to remain on bail until his sentencing on September 5, the DOJ concluded.
Vo could face up to five years in federal prison and a fine of up to $250,000.
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