The post DOJ Charges AurumXchange Operator with Money Laundering and Tax Violations appeared on BitcoinEthereumNews.com.

The United States Department of Justice (DOJ) has charged Maximiliano Pilipis, crypto exchange operator AurumXchange, with money laundering and tax violations. According to a DOJ report on October 28, Pilipis allegedly processed more than $30 million in transactions through AurumXchange, some of which originated on Silk Road, a darknet marketplace run by Ross Ulbricht under the alias “Dread Pirate Roberts.” Between 2011 and 2013, the marketplace allowed users to buy and trade criminal things anonymously using digital currencies. Filings by the DOJ show that from 2009 to 2013, Pilipis operated AurumXchange without a license and ignored federal regulations that placed crypto exchanges under the obligation to register with the U.S. Treasury Department. Additionally, according to the Department of Justice, he did not follow Know Your Customer guidelines, which are a component of AML/CTF regulations. He allegedly earned millions of dollars in commissions from processing transactions while operating the website, and among other things, he allegedly received roughly 10,000 Bitcoins, which are today valued at nearly $1.2 million. Federal Grand Jury Indictment After AurumXchange shut down, Pilipis was accused of dispersing assets to obscure their origins, converting cryptocurrency into U.S. dollars for real estate purchases in Indiana. Additionally, authorities assert that he neglected to file tax forms for 2019 and 2020, failing to disclose significant profits from these assets. In a significant step, a federal grand jury returned a superseding indictment against Maximiliano Pilipis, the AurumXchange owner. The indictment makes serious allegations, including five charges of money laundering and two counts of tax violations. Pilipis bears a substantial risk. If convicted, he may face up to ten years in prison and a fine of $250,000. However, the indictment does not primarily affect the final outcome. A federal district court will eventually decide his sentence, taking into account certain statutory factors and…

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Filed under: News - @ October 30, 2024 7:21 pm