United States:

DOJ Targets Unlicensed Bitcoin Money Transmitter, ICO Extortion Scheme

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On Monday, the U.S. Department of Justice (DOJ) announced that a
New Jersey resident pled guilty to one count of running an
unlicensed money transmitting business. According to the
government, the individual had operated a website through which he
converted clients’ fiat currency into bitcoin, transferred the
bitcoin to client wallets and charged a fee for his services. The
announcement contained no allegations of fraud or other wrongdoing,
other than not registering his business as required by federal
law.

In another announcement issued on Monday, the DOJ reported that
Michael Hlady pled guilty in a Brooklyn federal court to conspiring
to extort a startup company for millions of dollars’ worth of
ether (ETH). According to court documents, while the company was
planning its initial coin offering (ICO) in 2017, Hlady and a
co-conspirator repeatedly threatened that they would destroy the
company and its community unless the company sent them additional
funds and company tokens. The company transferred 10,000 ETH in
response to the threats.

According to reports published this week, South Korean
prosecutors have sold bitcoin for the first time in the
country’s history, transferring the proceeds into the national
treasury. The 191 bitcoin had been confiscated in April 2017 from
the operator of an illegal pornography site. While other countries,
such as the United States, have been auctioning confiscated bitcoin
for years, South Korean prosecutors have held on to the
cryptocurrency due to legal ambiguity regarding its treatment.
However, this recent sale follows the passage of the country’s
new cryptocurrency legislation, which went into effect at the end
of March.

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(Excerpt) Read more Here | 2021-05-30 21:50:14
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