Unlicensed Bitcoin Exchange Operator Facing Money Laundering Charges

Jacob Burrell Campos was reportedly arrested for his involvement in laundering approximately $1 million via Bitcoin, the first and foremost cryptocurrency. According to The Register, Campos — a San Diego-born resident of Mexico’s Baja California state — was arrested after attempting to enter the United States at the Otay Mesa crossing. Campos’ indictment, shared by The Register, had been unsealed over the weekend and indicates that the alleged wrongdoer changed cash into bitcoins on behalf of other individuals via popular cryptocurrency exchanges Coinbase and Bitfinex between the years of 2015 and 2017 — during which time he apparently charged a fee of five percent. Prosecutors allege that Campos completed 971 individual transactions on behalf of 900 customers.

Looking at 560 Years

As noted by the report, the act of converting cash into bitcoins on behalf of another isn’t inherently illegal in the US. What is illegal, however, is providing such a service without registering as a legitimate money transmitting business — which also requires appropriate record keeping and the reporting of suspicious transactions. According to the indictment, Campos not only operated as an unregistered business but also intentionally evaded currency reporting laws by moving sums worth less than $10,000 over the US-Mexico border — actions which have him facing 28 charges of money laundering, each of which could result in a maximum of 20 years in prison. Campos is also facing charges of running an unlicensed money transmitting business, conspiracy to structure monetary transactions, and failing to maintain an anti-money laundering program. What do you think about the charges being faced by Jacob Burrell Campos? Do you believe he will be found guilty? Let us know in the comments below!