USA condemn Bitcoin sellers to 1 year in prison for fraud by investors-regulation

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A Bitcoin seller was sentenced to one year and a day in prison, according to a message from the US Justice Ministry (DOJ). The man took money from customers, but did not give them the agreed bitcoins.

fraudulent Bitcoin seller ends up in prison

The US Justice Ministry (DOJ) announced last week that Michael Yusko was sentenced to one year and a day in prison, "because he cheated by customers with non-licensed Bitcoin business".

The 47-year-old resident of New Orleans sold Bitcoin and other cryptocurrencies to customers in May 2018. "Yusko would promise any amount of Bitcoin in exchange for US dollars five percent above the market price for a fee of five percent," said the Doj in detail and emphasized that he did not carry out transactions.

According to the Ministry of Justice, customers then complained about their Bitcoin purchases and explained:

yusko had cheated by not giving them the agreed Bitcoin after taking their money.

In addition, the residents of New Orleans did not register his company as a money transfer company at the Financial Crimes Enforcement Network (FinCen) of the finance ministry, added the doj and stated:

Yusko also instructed his customers not to inform any bank employee that the purpose of being transferred was the purchase of cryptocurrency.

The Doj found that in this case the Bitcoin seller guilty and admitted in accordance with a plea agreement, "to be responsible for losses in the amount of USD 201,399.00, concluded the doj:

Richter Ashe condemned Yusko for one year and a day in prison as well as three years of surviving release and an obligatory special examination fee of $ 100. As part of his punishment, Yusko was instructed to make a complete reimbursement of $ 411.009.00 to the victims.

Do you think that this Bitcoin seller should go to prison for one year? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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