A charge stood against BTC-e and one of its executives Alexander Vinnik of money laundering, conspiracy, illegitimate transaction and running unlicensed exchange. They get a penalty of $88.6 million for the executive and $12 million for the exchange given by Financial Crimes Enforcement Network in July 2017. These allegations are according to a court document. It’s a blatant disregard for the law. The exchange and the executive keep funds for other impish institutions engaged in the cryptocurrency industry. The source of the fund is hacking which degraded Mt.Gox.
Buying, selling and transactions with the done are done on the basis of anonymity. It doesn’t require any personal identity information from the users. BTC-e’s unfavorable exchange rates have boon kept willingly allegation from attorneys David Anderson, Sara Winslow and Kirsten Ault. The transaction amount in the recent years of BTC-e is over $296 million over more than 21,000 bitcoin transactions and related users were nearly 700,000. The origination of significant parts of BTC-e’s business from suspected criminal activity claim of the investigators.
People in its chatroom would publicly negotiate purchasing illegitimate materials on the dark-web so it can be said that the exchange was a shelter-house of criminal element. People contacted the administration of BTC-e throwing some question of how to process and access proceeds where funds were obtained from the sale of illegitimate drugs and other illegal transactions.
There is an allegation of confiscating between BTC-e and Costa Rica-based Liberty Reserve and that the firms distributed customers and had a program were ‘’BTC-e code’’ was retrievable for Liberty’s digital currency. Seizing the firm’s website and arresting its six principal operators occurred by U.S. authorities after Liberty Reserve was shuttered for laundering $6 billion in illegal funds.
Another exchange called Coin.MX accused of for the same reason like money laundering and counted down a handsome amount of charge indeed and info is that the exchange solved approximately 1,000 transactions on the platform of BTC-e. But it wasn’t caught in the suspicious activity done by Bank Secrecy Act. These sheltered funds were arisen by scams, computer hijacking, identity thieves and public officials who annexed funds.
Silence of SAR
At the time of receiving wire the exchange never asked for identity information and they always asked their clients to wire money to ‘’front’’ companies. To protect duel sides of a deal, BTC-e used to vague the funds of transaction. But t became loser because of its failure to register as a money transmitter. As a Money Service Business, a two count indictment charging of the operation of BTC-e and Vinnik were returned by a jury in California’s Northern District. The same returning got pushed forward six months later by a grand jury. Vinnik was alleged that he ran the platform as a personal bank after skimming money from, clients. But he denied everything even he denied that he was an executive of the exchange. But the attorneys are attempting to provide him wrong.