Two money launderers lose 25 million euros to Bitcoin and have to go to jail for years

Two bitcoin traders have to go to jail for 2 and 2.5 years. They have been convicted of money laundering.

The duo owned about 25 million euros of bitcoin. This is reported by the Public Prosecutor’s Office.

The court in Rotterdam convicted the duo. 6 months of both sentences is conditional.

Customers of the duo did not have to identify themselves, no data was kept. At the larger bitcoin trading places this is no longer possible in the Netherlands. Companies are obliged to identify someone and keep a good record of their customers‘ transaction history.
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Bitcoin trading

Fortunately, trading bitcoin is not prohibited in the Netherlands. However, the Tax Authorities were not aware of the trade. In this way the tax was avoided.

They bought millions of bitcoin with cash. The goal was relatively simple: with this transaction they could launder money from their customers. The services were offered at a market place on the darkweb.

16 million euro money laundering

A total of 16 million was laundered through the duo. Quite a turnover for 2.5 years of work. During the arrest, the money launderers possessed 2,532 bitcoin. They also seized 250,000 euros in cash.

However, this was not finished yet: several companies of the duo also had to go through with it. This resulted in a further 178,000 euros and a total fine of 90,000 euros for their various companies.

Rules

Don’t you comply with the rules in a country? Then chances are that sooner or later you will be dealt with. This is true for this kind of relatively small things, but nowadays also for the big bitcoin fairs.

The derivatives exchange BitMEX had over $2 billion of bitcoin in cash and was sued by the Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice. BitMEX did not have proper procedures and would therefore facilitate money laundering.