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Orange County Man Sentenced to Two Years in Prison for Laundering Bitcoin and Cash for Criminals

Posted by John Rogers | Jun 02, 2021

A man from Yorba Linda was sentenced on Friday to two years in federal prison for operating a virtual-currency service wherein he would exchange illegal cash into bitcoin. The defendant was sentenced by U.S. District Judge Josephine L. Staton. According to the U.S. Attorney's Office, the defendant pleaded guilty to three counts charging him with operating an unlicensed money transmitting business, money laundering, and failing to maintain an effective anti-money laundering program.

For a nearly five-year period between 2014 through 2019, the defendant owned Herocoin, an illegal virtual-currency service. He would offer bitcoin-cash exchange services, and charge commissions of up to twenty-five percent. Using the online moniker “Superman29,” the defendant would advertise his business and arrange in-person transactions at public locations. Through the defendant's plea agreement, the defendant knew the source of the funds he exchanged into bitcoin came from illegal activity.

The defendant's activities drew the attention of FinCEN. After the defendant registered his business, he, however, continued to fail to comply with federal law concerning money laundering, conducting due diligence, and reporting suspicious customers.

If you have been charged or are under investigation for a federal offense, then it is paramount that you contact an experienced federal criminal defense attorney. Contact us today to schedule a free consultation.

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