The state of New Jersey has indited a resident of Monmouth County for operating a Bitcoin exchange without obtaining a license.
According to the official press release, the man is charged with one count of operating an unlicensed money transmitting business. If found guilty, he can face a maximum penalty of 25 years along with a fine of $250,000.
The announcement detailed that William Green, a 46-year old man, ran a website called “Destination Bitcoin” and accepted money for Bitcoin trading. As the platform had no authorization, Green received fiat from his clients and deposited them in bank accounts that were maintained by him. He then converted the money into Bitcoin in accordance with his customer’s requests.
This is not the first criminal charge against the exchange operator as in February, he was charged for the same offense.
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“Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether or not the business is licensed as a money transmitting business in any State) with the Secretary of the Treasury,” the announcement stated. “However, Green did not register, either in his own name or in the name of his business, with the Secretary of the United States Treasury as a money transmitting business.”
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Last year, the US Attorney’s Office for the Southern District of California put similar charges on a man for running an illegal Bitcoin exchange and fined him a total of $823,357.
Meanwhile, in January, the Pennsylvania Department of Banking and Securities (DoBS) clarified that cryptocurrency exchanges do not need a money transmitting license from the state for operation.
Fraudulent activities involving digital assets are also rampant all around the world. Israeli authorities recently charged a man for stealing $1.7 million in crypto by luring victims into phishing scams.